Just a few weeks after its expansion into aviation finance, Guggenheim Capital Markets, LLC recently announced the hire of Ronald Iervolino as managing director of the company's structured finance unit and Steven Finnk as senior vice president in the trading group. The move is a reflection of Guggenheim's continued efforts to expand its presence in the capital markets.
Iervolino joins from First Albany where, as a managing director, he spent four years involved in credit-related trading across the ABS, RMBS and CMBS sectors. Prior to First Albany, Iervolino worked at Smith Barney, Donaldson Lufkin and Jenrette and UBS, where he ran various conduits and was responsible for the credit trading of residential, commercial and consumer related structured products. Finnk joins Guggenheim from United Capital Markets where he served as a senior analyst on the CDO and distressed ABS desk. Prior to UCM, Finnk managed CDO investments for AIG-SunAmerica.
At Guggenheim, Finnk and Iervolino will be responsible for non-agency structured products. They will work closely with managing director Evan Wallach and vice presidents Nolan Heske and Claude Franco of Guggenheim's newly created aviation finance unit.
"We feel there is a great opportunity for growth," said Iervolino. "In addition to our secondary trading, we will be focusing on repackaging, restructuring and re-remicing bonds and ultimately issuing new deals ourselves."
Ultimately, as the unit is filled out, the group is going to securitize new innovative products that have yet to come to market, added Finnk.
"We have a number of proprietary concepts that will create real value for our customers," he said.
Though the marketplace is probably past its lowest price levels, Wallach who has spent 25 years in the aviation finance markets, expects that the aviation sector will continue to see a high level of volatility over the next 12 to 24 months.
"With oil now in the $55 to $60 per barrel range, we feel there will be continued selling pressure in the aircraft space," said Wallach. "The bankruptcy risk of the legacy carriers remains very high, and this will lead to a market characterized by higher than normal price volatility and unique trading opportunities."
While initially focusing on building the broker-dealer's secondary sales and trading platform of secured aircraft bonds, Wallach said. "We will also be looking at originating new structured aircraft-related securities."
Guggenheim Capital Markets has had an active presence in the structured products markets. The firm is currently involved in the MBS, CMBS, ABS and leveraged credit markets, and employs 50 sales, trading and research professionals. Its parent company, Guggenheim Capital, LLC, is a diversified financial services company with principal offices in New York, Chicago, Los Angeles, Miami, London, Geneva and Hong Kong.
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