FBR Starts Credit Trading Group

In a fresh sign of talent migrating from bulge-bracket banks to regional dealers, FBR Capital Markets is launching a credit sales and trading unit staffed by a half-dozen pros from such institutions as Morgan Stanley, UBS and Merrill Lynch/Bank of America.

The initial contingent of the credit sales and trading group at Washington, D.C.-based FBR will focus on corporate bonds and bank loans - crossover, high-yield and distressed debt instruments in particular. It's the latest indication the difficult credit environment is actually multiplying career opportunities in the distressed-debt arena, by pulling in many buy-side and even sell-side players.

Among the Wall Street vets joining FBR's new team:

- Vikram Natarajan as managing director and head of distressed trading in New York. Most recently he headed the distressed trading team at UBS.

- Todd Dahlstrom, managing director, credit sales, Boston. He was an executive director at Morgan Stanley, where he helped launch the firm's fixed income distribution office in Boston.

- Paul Deen, managing director, credit sales, New York. He was an executive director in distressed sales at UBS, and previously worked at Bear Stearns and Goldman Sachs.

- Jay Coyle, senior vice president, credit sales, New York. He was a vice president in distressed credit sales at Banc of America Securities (formerly Merrill Lynch), and before that sold high yield and distressed bonds at Miller Tabak Roberts.

- Michael Cunningham, senior vice president, credit sales, Boston. He was a member of Morgan Stanely's high yield loan sales group.

- Eric Vander Mel, also from Morgan Stanley is scheduled to join the group as a desk analyst and senior vice president in June. He was an executive director in the special situations group at Morgan Stanley, responsible for research for the par loan trading desk.

The team reports to Michael Lloyd, an FBR senior managing director who's been handed the new role of head of credit, options and convertible securities within sales and trading, based in New York.