Jefferies Group (NYSE: JEF) has hired Jared Epstein, former head of flow credit trading at BNP Paribas, to take the helm of the asset manager’s new division for fixed-income exchange traded fund trades, according to a report.
Epstein is coming in to help build Jefferies’ expansion into ETFs tied to debt, report Matthew Leising and Lisa Abromowicz for Bloomberg.
Jefferies provides clients with market-making services for equity ETFs. They are seeking to offer debt-related ETF services.
Fixed-income ETFs have grown in popularity after the volatility scare witnessed last year and on assurances from the Federal Reserve that interest rates will remain at their near-zero levels at least until late 2014. Specifically, high-yield, junk bond ETFs have drawn higher inflows as investors sought out areas with greater yields in a times of historic low Treasury yields.
The asset manager also sponsors two ETFs:
- Jefferies | TR/J CRB Wildcatters Exploration & Production (NYSEArca: WCAT). [Jefferies Energy ‘Wildcatters’ ETF]
- Jefferies | TR/J CRB Global Commodity Equity Index Fund (NYSEArca: CRBQ). [Jefferies Commodity ETF]
The company has stated its intent to expand into the ETF industry, but has not launched any new recent offerings. [Jefferies Has Big Plans for Growing ETF Line]
Max Chen contributed to this article.