NEW YORK — Wells Fargo Securities has named former hedge fund trader Charles Mather as its head of commercial mortgage-backed securities trading, according to people familiar with the firm's trading desk.
Mather, who has worked at Sorin Capital Management and Bank of America Corp. in CMBS, took over from Chris Campbell, a veteran trader of Wells Fargo and Wachovia Securities. Wells Fargo Securities is the broker-dealer arm of Wells Fargo & Co.
The shift in power follows a turbulent year for trading in CMBS, which are used to fund loans on office, retail, apartment and hotel buildings. The market was one of the worst-hit in the second half of 2011 as U.S. and European debt crises turned investors away from risky assets, denting returns especially for investors who had been betting on the lower-rated portions of CMBS issues.
Yield premiums in the safest CMBS doubled to about 400 basis points above interest-rate swap rates through July and August, and remained volatile until finding some stability in December, according to JPMorgan Chase & Co. data. Yields on lower-rated classes soared further, resulting in delays and reduced profits on several new CMBS issues, meanwhile.
