The buzz in the structured finance world last week in response to the merger of UBS Warburg and PaineWebber carried mostly a positive tone, as market participants sang the praises of combined securitization teams that could possibly forge a stronger market presence for the new company. However, some market players warned that impending control of the combined research divisions would surely emanate from Warburg's headquarters in Connecticut.

"Warburg was looking to rebuild its ABS effort, so anybody involved in ABS at PaineWebber in probably in a pretty good spot," said an ABS market observer. "UBS has already said that they want to be a player in this business, so this could be a real winner for those guys. But beyond that, they're all dead meat. If I were a fixed-income researcher [at PaineWebber], I'd get your resume out there because you're out the door. The UBS fixed-income researchers are all up in Stamford and they're the ones who are going to call the shots."

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