London – BNP Paribas is reorganising its Fixed Income business by splitting it into two areas: trading and marketing. Frédéric Janbon will be global head of trading with responsibility for all risk taking businesses in Rates, Credit and FX. David Brunner (relocating from New York to London) and Paul Hearn will be global co-heads of marketing with joint responsibility for all client-facing activities (origination and distribution). All three men will report to Jacques d'Estais, Global Head of Fixed Income.
Since 2001, BNP Paribas' Fixed Income business had been organised around three global product lines (Rates, FX, Credit). This focused approach was very successful; client revenues more than doubled in the last three years, generating an impressive growth of the bottom line. BNP Paribas has become a leader in problem-solving businesses such as structured derivatives and Debt Capital markets, as well as in flow-driven businesses such as FX, government or credit bonds and credit default swaps. However, it has become increasingly clear that the old operating model was reaching its limits. Clients have been asking us to provide them with a more integrated coverage across Fixed Income asset classes and product types, a service that our previous marketing organisation did not easily provide. Although some recent organisational changes had been made in the regions in which we operate, we believed that our sales structure needed to be further adapted in order to meet more easily our clients' requirements and our business targets.
BNP Paribas also felt it needed to adopt a more integrated approach to taking risks across asset classes in order to capture more trading opportunities.
In addition to the management changes set out above, the following changes are also being made to our global Fixed Income business:
- Bob Hawley will move from Tokyo to New York to take responsibility for Fixed Income Americas;
- Hiraru Ogata replaces Bob as head of Fixed Income Japan; and
- Eric Nicolas remains Head of Fixed Income Asia (ex Japan).
BNP Paribas has set an ambitious development plan for its Securitisation business, with a specific focus on the extension of its US activities. Therefore, Michael Donahue, Global Head of Securitisation, will relocate to New York in order to drive directly the US effort. Given the strategic importance of succeeding in this area, Michael will report to Jacques d'Estais.
David Ovenden has decided to explore other interests outside Investment Banking. He will commence a 12 month period of exceptional special leave in March 2005, whilst remaining an employee of the bank. The bank thanks David for his contribution over the last seven years and hopes that he will enjoy his period of leave.
The Fixed Income Executive Committee members are now David Brunner, Jacques d'Estais, Francois Freyeisen (COO of Fixed Income), Frédéric Janbon, Bob Hawley, Paul Hearn, Eric Nicolas and Hiraru Ogata.
For further information please contact:
Group's Press Office :
Michèle Sicard, Head of Internal & External Information +33 1 40 14 70 61
Carine Lauru + 33 1 42 98 15 91
BNP Paribas London :
Jonathan Mullen, Corporate Communications +44 20 7595 2773
Rachel Parry, Corporate Communications +44 20 7595 2215