CHICAGO - JPMorgan recently trimmed about five professionals, primarily bankers, from its public finance rolls, according to several industry sources.
The cuts included Michael Maloney, a managing director who headed up the firm's health care group from its Dallas office, and James Kelly, a Chicago-based banker who has worked at the firm more than a decade and also previously worked for Bank of America Merrill Lynch.
The names of other public finance professionals cut were not available. The firm declined to confirm the names or comment on the layoffs.
Sources said the cuts were made from a staff of 210 that work in the firm's public finance group and represent less than 2 % of the overall team. They were made after a review of its business sectors. The cuts should not be seen as a backing away from public finance, one source said, adding that the firm plans to add staff in key areas over the summer.
JPMorgan Securities LLC gained more market share in 2013 than any top 10 underwriter, claiming 12.4% of the market, compared with 11.7% in 2012, according to Thomson Reuters data.
The bank maintained its position as runner-up to top-ranked Bank of America Merrill Lynch as manager on $38.5 billion. The bank finished third for the first quarter of 2014 leading deals valued at $5.8 billion.
Many in the industry have speculated that widespread cuts should be expected this year due to the drop in issuance last year and projections that volume in 2014 will take even a deeper dive.
Bond dealers expect 2014 to be the second-worst year for municipal issuance in a decade, and some predict the lowest volume since 2000, as the Federal Reserve's tapering program pushes interest rates higher. Issuance from January to March in 2014 fell to $62.5 billion from $84.4 billion for the three months in 2013, according to Thomson Reuters.
