As first reported on Credit Investment News' Web site, Erin Andrews, a distressed trader, and Don Whitmore, a loan-only credit default swap trader, have also left, along with a number of research staffers. Cuts in the sales groups are expected by the end of the month, according to market players. B of A announced it will be cutting 30,000-35,000 across the board over the next three years as it integrates the two firms. B of A and Merrill spokeswomen declined comment.
Individuals who picked up Santry's and Andrews' phones said they were no longer with the bank. No contact information could be determined for Whitmore. Many in the market were surprised by the distressed cuts because both Santry--whose formal title was head of the global special situations group--and Andrews have good reputations in the loan and distressed communities. B of A's distressed team finished seventh in the 2008 Credit Investment News' Best Trading Desk Awards. It finished second in 2007. Merrill's distressed team did not crack the top 10 last year; it finished ninth in 2007. However, one portfolio manager said Merrill has a very good distressed business. Market players anticipate that once the distressed group is fully integrated, dealers will trade both bonds and loans.
The bank loan syndication business will be run out of Charlotte, led by Glenn Stewart, head of loan syndication and sales for the Americas. Stewart reports to Tom Okel, head of global loan syndications. Okel reports to David Flannery, global head of leveraged finance. All appointments were effective Jan. 1. Joe Siman will be the new head of primary loan sales, reporting to Stewart. Siman previously held the same position at B of A. The high-yield bond syndication business is expected to be run out of New York, although that has not been announced. It is unclear who will be leading that group. One market player cautioned that this does not mean there will not be loan syndicators in New York or high-yield syndicators in Charlotte. Stewart referred a call to a spokeswoman. Okel did not return a call, nor did Siman.
For now, the loan desk will have two separate sales forces, one for primary and one for secondary. Howard Sysler, managing director at Merrill, is expected to be in charge of the secondary par sales force, although nothing has been announced internally. It is unclear who will be the head of the distressed secondary sales force. Frank Kotsen is the new head of U.S. distressed trading and par loan trading. Kotsen was previously a distressed trader at B of A focused on high yield. Brian Callahan, formerly a par trader at Merrill, is going to be the head par loan trader of the new group. Both B of A and Merrill are public, so the new desk will remain that way. Last Friday was the first day the two groups integrated their trading. In New York some traders have moved into B of A's Bryant Park office. Sysler did not return a call; Kotsen declined comment as did Callahan.
In the fall, B of A announced internally that Graham Goldsmith and Steve Zander will be the co-heads of the global distressed business. They report to Tom Montag, head of global markets, which includes sales, trading and research. All three come from Merrill.
