Our Fixed Income Division
High Grade CreditThe High Grade Credit group originates, underwrites and trades bonds for companies with investment-grade credit ratings. The group sells high grade bonds to qualified investors and banks through a dedicated sales force.
The group includes two major product areas:
- High Grade Bonds.
- Credit Derivatives.
- High Yield
The High Yield group originates, underwrites and trades bonds and loans for companies without a credit rating or with a rating below investment-grade. The group sells high yield bonds and loans to qualified investors and banks through a dedicated sales force.
The group includes four major product areas:
- High Yield Bonds.
- High Yield Loans.
- Credit Derivatives.
- Distressed Debt (bonds and loans).
The following functions operate under the High Grade Credit and High Yield groups:
- Credit Syndicate (High Grade Credit Only).
- Credit Trading.
- Credit Sales.
The Credit Syndicate desk is responsible for new issue pricing and the execution of all investment-grade securities for corporate, financial institution and sovereign issuers.
The Syndicate desk operates at the center of the bond issuance process and is involved in every step of a transaction, from pitching to the issuer to marketing the deal to pricing and hedging the issue.
The Credit Trading team is organized by industry sector and is responsible for trading both corporate bonds and credit default swaps and executing related hedges. The team covers high grade, crossover and high yield bonds, and trades with Lehman Brothers salespeople and directly through brokers. This team maintains constant interaction with our Research group, as well as our Sales team to discuss trade ideas.
The Credit Sales team is organized into three main categories: Money Markets, High Yield and High Grade. The team's main focus is to trade commercial paper and corporate bonds on a primary or secondary basis, as well as credit default swaps and structured products with its account base. The sales force works closely with the Credit Traders and Research to communicate data and trade ideas with their clients.
- Collateralized Debt Obligations
- Collateralized debt obligations (CDOs) are structured fixed income securities that are backed by various types of fixed income instruments. The CDO desk consists of structurers and traders working closely together as a team. The structurer's role is to market solutions to clients directly, as well as through salespeople, and to work with traders to execute CDO strategies and manage risk. The trader's role involves pricing and hedging structured products, while closely monitoring the book's ongoing exposure.
- Emerging Markets
- The Emerging Markets team provides sales, trading and research coverage for securities in Latin America, Eastern Europe, Africa and Asia. Creditors from these emerging markets access capital denominated in major currencies by issuing international bonds.