RBS poaches Capp for new leveraged platform

RBS has integrated its leveraged loan and high-yield debt platforms into a new leveraged capital markets platform and scored a major coup with the poaching of Eric Capp, managing director head of JPMorgan’s much-vaunted high-yield operation, to head the platform. He replaces Nick Coates.

Capp will head the new integrated group, which combines high-yield capital markets, which Coates headed, and leveraged loan markets, which David Yeoman heads. Yeoman will continue to run leveraged loan markets, reporting to Capp. Capp, in turn, will report jointly to David Bassett, global head of loans, and John Hourican, head of leveraged finance, Europe and Asia-Pacific.

Capp is a big name hire for RBS as he comes from JPMorgan, a firm that dominates the European high-yield market, alongside Credit Suisse and Deutsche Bank.

Hourican said that the hire, and the integration of the leveraged loan and high-yield platforms, reflected the growing convergence of the loan and bond offerings in the subordinated debt space as well as convergence in the investor base. Many institutional investors, especially hedge funds, are able to book any part of a leveraged capital structure.

“It is important for us to take our excellent leveraged loan platform to the next step and, given the convergence of loan and bond products and the investor base, an integrated platform makes sense,” said Hourican. “We are absolutely focused on being a serious player in European high-yield and the change will make us an even better player overall in the leveraged finance space.”

The move to integrated loan and bond platforms, which is essentially the adoption of an investment banking platform even though RBS is a commercial bank, is very much in vogue at the moment because of the influx of institutional investors over the past three years.

Nachum Kaplan