M.Stanley hires restructuring boss from Merrill -source
By Elena Moya
LONDON, May 22 (Reuters) - U.S. investment bank Morgan Stanley (MS.N) has hired Ben Babcock, former head of European restructuring at Merrill Lynch MER.N, ahead of an expected increase in corporate debt defaults, a person familiar with the matter told Reuters.
Babcock will join the bank later this summer to head Morgan Stanley's European restructuring team, the source said.
Morgan Stanley declined to comment.
The bank recently lost Iain Burnett, Managing Director, responsible for the firm's European Distressed Debt and Special Situations Group. Burnett went to BlueBay Asset Management to co-head the European Distressed Debt Group along with Gina Germano.
The global 12-month corporate speculative-grade bond default rate is expected to rise to 4.7 percent over the next 12 months, from 1.29 percent in April, as companies struggle to make debt payments, according to rating agency Standard & Poor's.
Media and entertainment, consumer products and retail and restaurant sectors show the most vulnerability to default, a recent S&P report said. (Editing by Will Waterman)
