Jobs created by new approach to RMBS
Investment banks' efforts to squeeze money out of the low margin residential mortgage backed securitisation business may be creating jobs. But the numbers aren't likely to be huge.
"Banks are buying mortgage platforms themselves and using them to issue securities," says one headhunter specialising in the securitisation arena. "They're taking the equity piece, and passing on the senior and mezzanine debt."
He points to Morgan Stanley's recent announcement that it hired Steven Kahn from Lehman Brothers to fill a new role as head of European residential whole loan trading and risk management.
Kahn's appointment follows the bank's purchase of Advantage Home Loans, a UK specialist and non-conforming mortgage broker, in December last year.
At least two other investment banks are interested in copying Morgan Stanley, says the headhunter. However, he says teams in the area are likely to be no more than four or five people strong, and that most will be staffed using internal movers. External hires are likely to be mid-ranking and execution focused: "You're looking at an extra one or two people to structure deals."
Separately, Derivatives Week reports that JPMorgan is looking to rebuild its securitisation business under Olrich Masek. Masek was not available for comment.
