(Bloomberg) -- GoldenTree Asset Management LP, a money manager overseeing $15.9 billion in assets, hired Daniel Ornstein from Morgan Stanley to co-head its trading business.

Ornstein is a partner reporting to Steve Tananbaum, managing partner and chief investment officer at GoldenTree, according to Scott Sunshine, a spokesman for the firm. Ornstein led the North American distressed trading group at Morgan Stanley.

He will work with Corey Geis, co-head of trading, Sunshine said. GoldenTree, a New York-based firm founded in 2000, invests mostly in leveraged loans and high-yield bonds via hedge funds and collateralized loan obligations.

Lauren Onis, a Morgan Stanley spokeswoman, declined to comment.

GoldenTree raised a CLO of about $590 million with Bank of America Corp. last week that replaces a financing for a credit opportunity fund it oversees. The deal allows for as much as a 40 percent investment in second-lien loans and high-yield bonds. The firm also raised a $526.8 million fund with the bank earlier this year.

CLOs are a type of collateralized debt obligation that pool high-yield, high-risk loans and slice them into securities of varying risk and return.

Trading in leveraged loans dropped to $98 billion during last quarter, a decline of nine percent from the first three months of the year, according to the Loan Syndications and Trading Association.