Following its takeover, job cuts loom at Credit Suisse. But they're also Credit Suisse units UBS wants to expand.
UBS is preparing massive job cuts at Credit Suisse potentially affecting up to 35,000 employees and Credit Suisse employees are leaving in droves. Although UBS is cutting jobs en masse at Credit Suisse, there's at least one area where it plans to expand: the business of buying leveraged loans and bundling them into bonds.
Credit Specialists Wanted
The bank is looking for specialists for its collateralized loan obligation (CLO) team, including credit analysts, «Bloomberg» (behind paywall) reported, citing informed sources. The bank is also seeking to retain key staff in this area, it said.
According to the report, John Popp, the global head of Credit Suisse Asset Management (CSAM) and chief investment officer of the Credit Investments Group, which specializes in high-yield credit, will remain at UBS.
Attractive Business
Popp heads the CLO unit and will join UBS Asset Management's investment management team, where he will report to Barry Gill, head of UBS's investment unit, the sources said. A UBS spokesman declined to comment.
The CLO business generates comparatively high fee income and is considered an important part of CSAM, he said. Credit Suisse is one of the largest managers in this area, while UBS previously had little involvement in the CLO management business. Through the acquisition of its Swiss competitor, it becomes an important player in this market.
