Banks' department walls are crumbling.

Financial News, November, 2003

Byline: Natasha de Teran

Investment bankers used to be able to live in splendid isolation within their product areas. Credit specialists dealt with credit and equity specialists with equity - experts within the two separate groups reported to their line managers, without so much as a sideward glance.However, with the rapid growth of cross-asset class investing and hybrid products, the department walls are beginning to show signs of crumbling.

The rapid rise of capital structure arbitrageurs - investors and traders that seek out relative value opportunities between companies' credit, equity and related options - has accelerated over the past 18 months. To serve them, banks have been forced to rethink, some moving their credit derivatives and equity...

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