Sherlock, who was head of U.S. loan and high-yield capital markets at Deutsche Bank, will be co-head with Stephan Jaeger, according to an internal memo obtained by Bloomberg News. Sherlock and Jaeger will report to Robert Schleusner, head of global leveraged finance, and share responsibility for all underwritten and “best efforts” loan and bond financings, according to the memo.
Bank of America’s hiring of Sherlock comes as it has dropped to second in loan underwriting after taking the top spot for the past three years, according to data compiled by Bloomberg. Leveraged loans, which back buyouts and help companies refinance, had their biggest year on record in 2013, with $352.7 billion of issuance volume, the data show.
“Kevin has been a great partner and one of the keys to our success, but we are extremely fortunate to have a strong bench of talent ready to lead,” Mark Fedorcik, global head of leveraged finance and debt capital markets at Deutsche Bank, wrote yesterday in an internal memo obtained by Bloomberg.
Deutsche Bank named Alexandra Barth and Robert Miller as co-heads of U.S. high-yield capital markets, and Sandeep Desai and William Wiltshire as co-heads of U.S. leveraged loan capital markets, according to a person with knowledge of the moves, who asked not to be named because the changes haven’t been announced publicly. They all report to Sean Murphy, head of leveraged finance and debt capital markets, Americas, the person said. The appointments were announced last week.
Bank of America also named Sarang Gadkari as head of U.S. leveraged finance, according to another person with knowledge of the moves. Gadkari also reports to Schleusner.
Kerrie McHugh, a spokeswoman for Charlotte, North Carolina-based Bank of America, confirmed the contents of the memo. Sherlock didn’t return a call and text message seeking comment. Mayura Hooper, a Deutsche Bank spokeswoman, declined to comment.
John Cokinos, who was head of U.S. leveraged finance capital markets at Bank of America, left last year. He joined Royal Bank of Canada earlier this year. A.J. Murphy, who was co-head of leveraged finance at Bank of America, left last month to join Goldman Sachs Group Inc. as a partner.
Bank of America is the second-largest underwriter of new leveraged loans this year with 8.2 percent market share, behind JPMorgan Chase & Co.’s 12.6 percent, according to Bloomberg data. Frankfurt-based Deutsche Bank is the eighth-largest with 5.8 percent.
There have been $66 billion of new leveraged loans arranged this year, Bloomberg data show.
Bank of America is the fifth-largest underwriter of U.S. high-yield bonds with 9 percent market share, according to Bloomberg data. JPMorgan is the biggest underwriter with 11 percent market share.
There have been $61.4 billion of high-yield bonds arranged this year, according to Bloomberg data. There were $380 billion of high-yield bonds arranged in the U.S. last year.
Leveraged loans and high-yield bonds are rated below BBB-by Standard & Poor’s and less than Baa3 at Moody’s Investors Service. In a best-efforts deal, arranging banks don’t provide a firm commitment for financing an entire transaction.
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