JPMorgan Asset Management (JPAM) is following in the footsteps of AXA Investment Managers, Fortis Investment Managers, and Henderson Global Investors, and launching a European collateralised debt obligation (CDO) fund. The move will likely have a knock-on effect for hiring.
Dominic Powell, former head of the CDO solutions group at Henderson Global Investors, and head of the new CDO business at JPAM, says the bank is currently reviewing its resourcing needs in that area. Internal moves are a possibility: "JPMorgan is a huge organisation," he says.
Headhunters say funds are likely to follow in JPAM's footsteps. "CDOs are a hot area that's going to grow and grow," says Chris Manfield, head of the European Asset Management Practice at search firm Whitney Group in London. "The CDO market has doubled in the past five years and other traditional asset managers are likely to try and exploit the knowledge gaps that still exist in that market."
Fund managers moving into CDO funds will need to be more analytical and numerate than most of their counterparts, says Manfield. He says many likely to be drawn from the proprietary trading desks of investment banks.