Wells Fargo is downsizing its European asset-backed securities business and merging it with its credit team, according to three people familiar with the matter.
Bloomberg News reports that any cuts by the bank follow Barclays’s decision last month to let go senior securitization staff in London as it reallocates capital to more profitable businesses. It’s become tougher to make money in Europe’s asset-backed debt market because of sluggish new sales and thin yield premiums caused by the European Central Bank’s purchase program.
'Overall staffing for Wells Fargo Securities in London is up in 2015 and we remain committed to growing the business in Europe', said Wells Fargo spokeswoman Elise Wilkinson, who declined to comment on individual employees. 'We are constantly evaluating our business model to better serve our investing, issuing and advisory clients in the region'.
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