Almost a decade after the global financial crisis, structured credit professionals are back in vogue at Goldman Sachs.
Goldman recently hired Omar Waly, a former director at Credit Suisse who worked in credit structuring at the Swiss bank for nine years. Waly joined the Goldman’s London office earlier this month as an executive director.
With over a decade of experience, Waly is a specialist in correlation trades, CDOs (collateralized debt obligations), and balance sheet securitisations, all of which were associated with the financial crisis in 2008.
Some of the associated products are making a comeback. Synthetic CDOs which were partly held responsible for fueling the global financial crisis are resurgent. A research report by Citigroup published in October last year predicted that the sales of such products would reach as much as $100 billion by the end of 2017 from about $20 billion in 2015.
Waly began his career in credit structuring at BNP Paribas a year before the financial crisis, after completing his post graduation in finance from Imperial College London. In the second half of 2009, he joined Credit Suisse as a director of credit structuring and headed investment solutions like repackaging and credit-linked products for nine years, before leaving the Swiss bank for Goldman. He graduated from Cass Business School in banking and international finance.
Goldman Sachs has been hiring-in executive directors and VPs to boost its business, Last month, David Solomon, the CEO in waiting at Goldman Sachs, said the bank plans to focus on flow rather than structured products as it seeks to rebuild revenues in fixed income currencies and commodities trading.
2018 is looking good for Goldman Sachs’ fixed income traders
Separately, banking analysts at KBW spoke to Ashok Varadhan, co-head of the securities division at Goldman Sachs. Varadhan told them the GS FICC division benefited from increased volatility (related to Italy, Venezuela and elsewhere) in Q2 and that it stands to benefit further as the year progresses and quantitative easing is unwound. Goldman has gained significant market share in FICC, said Varadhan, adding that this might be because of retrenchment by European banks.
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