Stockbroking firm, Patersons Securities has launched a new specialist fixed income and hybrid securities joint venture based in Sydney called Davies & Partners.
Stockbroking firm, Patersons Securities has launched a new specialist fixed income and hybrid securities joint venture based in Sydney called Davies & Partners.
The new venture will be 50 per cent owned by each of Patersons and Davies & Partners principal, Bryan Davies, an Australian fixed income market specialist.
Mr Davies was most recently chief executive and co-founder of Yellow Brick Road, where he also managed a sizeable fund including a large fixed income and hybrid portfolio.
Previously, he was head of structured capital markets at both UBS Investment Bank and Salomon Smith Barney, where he had responsibility for all facets of the fixed income trading and sales business.
Patersons executive chairman Michael Manford said the new venture was a very exciting and important development for the group.
Full announcement below:
Patersons launches new fixed income and hybrid securities unit
8 September 2009
Patersons Securities Limited is pleased to announce the launch of a new specialist fixed income and hybrid securities joint venture based in Sydney.
Davies & Partners will be 50% owned by each of Patersons and Principal Bryan Davies, one of the most experienced and respected specialists in the Australian fixed income market.
The new business will also play a key role in the development and management of Patersons' institutional fixed income broking business in conjunction with the firm's institutional dealing team led by Phil Schofield.
The business will produce research, manage assets and also advise on fixed income and hybrid capital markets business in conjunction with Patersons' Corporate department. The business will leverage the Patersons national network, as well servicing other select advisers through a number of investment platforms.
Mr Davies was most recently CEO and co-founder of Yellow Brick Road, where he also managed a sizeable fund including a large fixed income and hybrid portfolio.
Previously, he was Head of Structured Capital Markets and Co-Head of Financial Institutions Group at UBS Investment Bank. Prior to that, he was Head of Structured Capital Markets and Co-Head of Fixed Income at Salomon Smith Barney, where he had responsibility for all facets of the Fixed Income trading and sales business.
Patersons Executive Chairman Michael Manford said the new venture was a very exciting and important development for the group.
"We see this as a great opportunity for both Patersons and for our clients, who have demonstrated high demand for new products and services beyond Australian equities," said Mr Manford.
"Bryan has an outstanding background in the fixed income and hybrid area and brings a wealth of experience to our business and client base.
"We are very confident this new venture will deliver great value to our clients and to the firm."
Mr Davies said he looked forward to the opportunity to work in particular with the very sizeable Patersons national network - "with some 290 private client advisers, Patersons incorporating Tolhurst has grown to be the most significant private client network in Australia".
"The aim is to give clients of Patersons and other advisers access to fixed income expertise and products, providing a greatly expanded set of investing opportunities," said Mr Davies.
"ASX listed fixed income and hybrid securities, with market capitalisation of about $19 billion (including pending new CBA PERLS V issue), and with yields from around 8% to significantly higher, represent an outstanding investment opportunity provided the security structures and credit risks are thoroughly analysed".
"For issuers, the value of well structured and well managed issues in the market has never been higher, providing both supplemental and diversified credit on more flexible terms, a value that has been proven through the financial crisis. Investor demand for the right issue and terms is strong, so we expect a steady supply of new issues over coming years", said Mr Davies.
