Author: Phillip Eade
Bear Stearns' international expansion continues apace, and in Andy Clapham, the bank now has on its books one of Europe's leading experts in securitization.
Clapham has as much experience in securitization as just about anyone outside the US. It was he, you may remember, who in 1996 kick-started the collateralized loan obligations (CLO) market in Europe with the Rose deal. This raised $5 billion against NatWest's portfolio of 300 corporate loans and won the Euromoney deal of the year award. It has since been copied by countless other banks.
Rose gave this easy-going Englishman a reputation for innovation that he has held on to ever since. "He's someone who looks at things in new ways," says one former colleague, "and he's prepared to take risks to develop new structures." Another adds: "He's one of the most creative people in the market from a structuring prospective. And he's a master at seeing opportunities within regulatory environments. He's also a very well-rounded, nice guy, not all arrogant or hard-nosed. He's great to work for, demanding yet relaxed."
While at NatWest, Clapham was also involved in the creation of the sub-prime mortgage market, and he later made waves with the £1 billion acquisition and subsequent securitization of student loans from the British government - another first in Europe - and a similar £1 billion deal involving housing association loans.