JPMorgan Slashes DCM Team

JPMorgan has cut at least three senior executives in its LatAm debt group as part of a 10% reduction in global headcount focused on investment banking. Mark Tuttle, MD and head of LatAm debt capital markets, has left the firm and Cynthia Powell, JPMorgan’s veteran head of LatAm syndicate, has also exited, say people familiar with the layoffs. Head of LatAm loan syndications Ricardo Rubio has also been let go, with at least another 3 heard departing from the debt group. Tuttle and Powell were formerly at Chase together and assumed senior roles at JPMorgan after the merger in 2001. The departures mark a significant loss for JPMorgan, which has tended to focus on large investment grade corporates in the region, including Cemex, Gerdau, Pemex, Televisa and Usiminas. The shop’s share of LatAm DCM has dwindled over the last 12 months. As of November 17, it had done 7 deals for $1.57bn in proceeds, down 57% from the $3.64bn it booked from 12 trades in the corresponding period of 2007, according to Dealogic. There was a 33% decline in market volume overall over the same timeframe. While the DCM outlook is indeed bleak for 2009, the shop is understood to have secured a lead role on Codelco, which is expected to be first out the gates with a $500m-$700m bond when markets reopen. It was also expected to increase activity in liability management to counter the downturn in financing. And JPMorgan recently arranged large acquisition loans for VCP’s takeover of Aracruz, which has been suspended, and Magnesita’s acquisition of LWB in Germany, which has closed but awaits regulatory approval. A JPMorgan spokeswoman declines to comment on specific layoffs.