(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.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access