NationsBanc Montgomery Securities Inc. has hired equity derivatives pro Jonathan Sandelman to launch its equity derivatives business.
Mr. Sandelman, 39, a managing director of global equity derivatives and convertibles at Salomon Brothers, was appointed a senior managing director and director of equity derivatives and convertibles.
He will be based in New York, and report to Jerry Markowitz, senior managing director and director of capital markets at NationsBanc Montgomery, the investment banking unit of Charlotte, N.C.-based NationsBank Corp.
"For us, it's about providing all appropriate products to our client base," Mr. Markowitz said. He added that NationsBank's platform, and its relationships with institutional investors will allow them to sell those new products to customers.
Mr. Markowitz said the bank plans to initially hire 30 to 35 people under Mr. Sandelman, and eventually expand the group to 60.
Up next for NationsBanc Montgomery, Mr. Markowitz said, is building industry groups to cover the energy, forestry products, and textile sectors, in addition to "taking a good hard look" at extending its high- yield bond effort to Europe.
Bank of America is also beefing up its equity derivatives team. The bank appointed Harry Kat as head of equity derivatives in Europe.
Mr. Kat will manage Bank of America's joint venture with boutique investment bank D.E. Shaw & Co., established in March. Bank of America partnered with Shaw to offer convertible bonds, equity securities, equity warrants and options, and over-the-counter derivative instruments to its corporate clients. The venture gives Bank of America's clients access to D.E. Shaw's equity related products.
Mr. Kat will report to Tom Binks, deputy head of global financial engineering and risk management, and to Bob McBain, head of global equity derivatives in San Francisco.
Mr. Kat, who will be based in London, joins the bank from TMG Financial Products, where he was head of financial engineering.
"Given the banks' corporate client base, it's a great fit," said Mr. McBain of the equity derivatives business. "And we believe that it will be a good fit with the Robertson Stephens activities."
