07/01/2011

Barclays Hires Boester for Key Mortgage Job

Barclays has hired former J.P. Morgan mortgage banker Greg Boester to lead an initiative aimed at expanding its role as a funding source for U.S. home loans.

Boester, who most recently helped manage a mortgage-backed securities fund at Citadel under industry veteran Bill King, is set to join Barclays’ New York office on Sept. 15 as a managing director. He’ll report to Tom Hamilton, head of securitized-product trading, and Diane Rinnovatore, who leads securitization banking with Cory Wishengrad. Joseph O’Doherty, a director who has worked at Barclays for several years, will be Boester’s right-hand man.

Boester’s general mandate is to promote Barclays as a funding source for lenders that originate mortgages. Much of that effort will entail writing more warehouse lines to mortgage lenders across the U.S. In some cases, Barclays might purchase the resulting mortgages, then securitize them via its own conduit. In other cases, the originators might securitize the loans themselves, with Barclays playing the role of bookrunner. In addition, Barclays might help broker sales of mortgage portfolios.

Because Barclays doesn’t originate home loans in the U.S., its ability to develop relationships with mortgage lenders is key. The bank is counting on Boester to leverage his extensive experience in the mortgage business, including a stint at J.P. Morgan from 2002 to 2008, followed by three years at Citadel.

Boester also will work on mergers and acquisitions that involve the transfer of large pools of whole loans or mortgage bonds. Case in point: Barclays recently advised Capital One on its purchase of ING Direct, which had more than $80 billion of mortgage bonds on its books.

In addition, Boester will be responsible for maintaining Barclays’ lucrative relationships with the FDIC and National Credit Union Association, both of which have hired the bank to underwrite transactions backed by mortgage bonds and whole loans seized from failed institutions. Over the past nine months, Barclays has run the books on $24.6 billion of mortgage securitizations issued by the NCUA, according to Asset-Backed Alert’s ABS Database.

Boester first worked with King at J.P. Morgan. After King joined Citadel in 2008, he recruited Boester to join a team of mortgage-bond traders. Last year, King helped launch a closed-end vehicle dubbed Citadel Residential Mortgage Opportunities Fund, but then abruptly left the Chicago firm in March. Boester left shortly thereafter. The fund has since been shut down.

Boester’s addition appears unrelated to a recruiting effort at Barclays that followed the loss of about a dozen securitization staffers to Credit Suisse in February.

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