US investment bank Lehman Brothers has lured a 15-person equity barrier options team from rival Credit Suisse First Boston (CSFB) as part of its bid to boost its equity derivatives operations.Lehman has been slowly building its capabilities in equity derivatives during the past two years, but the new move is the largest single effort to date.
A Lehman spokesperson was keen to stress that the team had been brought in to expand Lehman's product structuring and tailoring capaibily to clients, rather than as an attempt to steal a team believed to produce strong revenues.
The barrier options team will be headed by Jerry Guthrie, a former Donaldson Lufkin & Jenrette (DLJ) employee. US investment house DLJ was bought by CSFB in August 2000.
Guthrie will report to Divid Bizer, managing director of equity derivatives sales, and Siggi Thorkelsson, managing director and head of structured volatility trading.
Traders, marketers, structurers and back-office personnel make up the rest of the barrier options team. In simple terms, a barrier option is a path-dependent option that is activated or terminated if a specific spot rate reaches a specified trigger level. Barrier options typically offer higher margins than vanilla options.
More on People
Bank veterans Bristow and Pluta promoted to global co-heads, reporting to Rohrbaugh
US firm recruits externally as it looks to boost savings business
US bank parts company with 15-year veteran who moves to the buy side
Chris Leone and Dushyant Chadha replace Paul Galietto
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.