UBS' U.S. structured trading head leaves bank
NEW YORK |
NEW YORK Nov 9 (Reuters) - UBS's head of structured credit trading in the United States, David Carlson, has left the bank as part of the firm's restructuring, which involves 10,000 staff cuts and a dramatic pull-back in riskier fixed income products, according to a person familiar with his departure.
Carlson was a high-profile hire for UBS in 2011, when he joined from Morgan Stanley, where he headed U.S. structured credit sales.
Carlson could not be reached for comment on Friday, and Megan Stinson, a spokeswoman at UBS in New York, declined to comment.
The Swiss bank is pulling back from riskier credit products that have higher capital requirements under new regulations designed to reduce risks of privately traded derivatives, making them less attractive to trade.
Other rules that aim to curb banks' trading with their own capital are also leading many banks to focus more on products that are in demand from corporate and private banking clients.
UBS said last week that it would cut jobs globally as it exits unprofitable businesses, with most cuts coming from fixed income.
The bank, however, is expected to remain in lower-risk fixed income products, including U.S. Treasuries, the source said, where there is demand from clients for the securities.
It will also continue to be active in some high-grade credit products and in commercial-mortgage-backed securities.
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