Key Takeaways
- • RBC Capital Markets hired two senior distressed-credit professionals since March 2020: Jim Russo (formerly PointState Capital portfolio manager and Citigroup distressed sales veteran) as director of distressed credit trading, and Callie Simpkins (ex-Goldman Sachs leveraged finance sales) as director focused on distressed hedge-fund clients.
- • Adam Savarese, head of US high yield and distressed trading (former Goldman Sachs partner who joined RBC in September 2019), and John Maggiacomo, head of US leveraged finance sales, confirmed the firm has been seeking talent upgrades for over six months to strengthen its leveraged finance platform.
- • RBC's hiring strategy capitalizes on market disruption from the coronavirus pandemic, which has created a wave of distressed US companies and unlocked talent availability as other banks reassess their sales and trading investments.
- • The timing aligns with Wall Street's anticipated "feeding frenzy" in distressed assets, positioning RBC to capture opportunities in credit trading amid the economic crisis.
Summary
Royal Bank of Canada's Capital Markets division is aggressively building out its distressed-credit trading capabilities amid the coronavirus-driven market turmoil of spring 2020. Since March, RBC has brought aboard two key hires—Jim Russo and Callie Simpkins—as part of a deliberate effort to strengthen its leveraged finance platform and capitalize on anticipated distressed-asset opportunities.
Jim Russo, who started at RBC last week as a director in distressed credit trading, brings substantial crisis-cycle experience. He previously served as a portfolio manager at hedge fund PointState Capital and spent six years in distressed sales at Citigroup. His background also includes roles at Barclays and Lehman Brothers during the 2008 financial crisis, providing relevant expertise for navigating the current credit environment. Callie Simpkins, joining from Goldman Sachs' leveraged finance sales desk where she began her career in 2013, will report to RBC's office in mid-May as a director focused primarily on distressed hedge-fund clients while maintaining broad exposure across credit products.
The strategic nature of these hires becomes apparent through comments from RBC leadership. Adam Savarese, head of US high yield and distressed trading and himself a former Goldman Sachs partner who joined RBC in September 2019, and John Maggiacomo, head of US leveraged finance sales, revealed that the bank has been pursuing talent upgrades for more than six months. "We felt talent was available and that we could significantly improve the platform with a few key hires," Savarese told Business Insider. The recent market dislocations have created favorable conditions for recruitment, as other financial institutions reassess their capital allocation to sales and trading operations. "These hires lined up perfectly, given the timing," Maggiacomo added, underlining how RBC positioned itself to attract experienced professionals during a period when opportunities in the distressed-credit market were expected to expand significantly.
Jim Russo, who started at RBC last week as a director in distressed credit trading, brings substantial crisis-cycle experience. He previously served as a portfolio manager at hedge fund PointState Capital and spent six years in distressed sales at Citigroup. His background also includes roles at Barclays and Lehman Brothers during the 2008 financial crisis, providing relevant expertise for navigating the current credit environment. Callie Simpkins, joining from Goldman Sachs' leveraged finance sales desk where she began her career in 2013, will report to RBC's office in mid-May as a director focused primarily on distressed hedge-fund clients while maintaining broad exposure across credit products.
The strategic nature of these hires becomes apparent through comments from RBC leadership. Adam Savarese, head of US high yield and distressed trading and himself a former Goldman Sachs partner who joined RBC in September 2019, and John Maggiacomo, head of US leveraged finance sales, revealed that the bank has been pursuing talent upgrades for more than six months. "We felt talent was available and that we could significantly improve the platform with a few key hires," Savarese told Business Insider. The recent market dislocations have created favorable conditions for recruitment, as other financial institutions reassess their capital allocation to sales and trading operations. "These hires lined up perfectly, given the timing," Maggiacomo added, underlining how RBC positioned itself to attract experienced professionals during a period when opportunities in the distressed-credit market were expected to expand significantly.
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