Legg Mason has hired a new head of structured products in hopes of improving its fixed-income unit.

Bloomberg's Jody Shenn reported that Western Asset Management Co., fixed-income unit of Legg Mason [profile], has a new head of structured products, Anup Argarwal. He is a veteran of Stark Investments, an alternative investment firm and Invesco [profile].

Fixed-income at Legg Mason hasn't been doing so hot, Shenn points out, with assets dropping by $15 billion to $351 billion over the past couple of years. Paul Jablansky resigned from the company last month.

The firm has been trying to improve its structured products unit, as the products fell to $16 billion after a peak of $80 billion before and during the financial crisis, Shenn writes. Shenn interviewed James Flick, the firm's director of global client service and marketing. Of structured products, Flick said, "We still have a huge commitment to this sector, but the actual workload is way, way down," in an interview with Shenn.

Legg Mason CEO Joe Sullivan said he will improve the firm's performance by acquiring a unit for U.S. equities and expanding its alternative investment offerings and mentioned breaking into private equity and real estate. Two major executives have also left the company with big parachutes since he began as CEO, Ronald Dewhurst, senior executive vice president and Thomas Lemke, executive vice president and general counsel.

Another recent Western Asset Management retiree, who managed commercial-mortgage bonds and consumer asset-backed securities, Deborah Slogoff, did not offer Shenn a comment on what she's doing next.

To read more, click here.  

Edited by: Casey Quinlan


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