UBS embraces vertical integration

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UBS embraces vertical integration

Key structural alterations have been made to UBS’s fixed-income business that involve the vertical integration of sales and trading in four product areas: investment-grade credit, MBS/ABS, European government/Libor derivatives, and US Libor flow derivatives.

“We are looking at our business and aiming to provide a better service and fill any gaps that exist. There are a number of areas where we want to grow our business,” says Simon Bunce, global head of fixed income.

Bunce, who ran investment banking in Japan until a year ago, says that these changes will help UBS be a better integrated fixed-income house. The vertical combination of sales and trading, managed in one team, is the most appropriate structure for flow, commoditized products. It’s a shift from the traditional fixed-income model that some other banks have already taken.

Global head of fixed-income sales David Shulman becomes head of the municipals securities group and regional head of fixed income for the Americas. Former head Terry Atkinson is now chairman of the group until he retires in the first quarter of 2007.

Other important changes involve Simon Schwartz, who is now global head of rates, and Chris Ryan, who now runs global credit fixed income based in Stamford. Henrik Raber, who ran European syndicate, is now co-head of European investment-grade sales and trading. Raber’s co-head is Ben Neilsen, who was head of financials.

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