Four former employees of MF Global, the brokerage firm that went bankrupt late last year, have joined Knight Capital as part of that firm’s effort to expand its sales team in non-agency mortgage-backed securities, according to John Welde, Knight’s global head of structured product sales.
The new hires include Michael Corsi, managing director in mortgage sales, and Rus Morgolin, managing director in non-agency trading, along with directors in non-agency trading Miguel Vazquez and Doug Adelman.
The focus on increasing the sales team comes in anticipation of a change in the way primary dealers will hold non-agency bonds, as increased risk-weighted capital requirements per Basel III and the Volcker rule cause firms to hold positions for shorter time periods, according to Welde. “The ability to....