Bloomberg – Citadel Investment Group LLC will formally open its credit business next month as the $13.5 billion hedge fund founded by Ken Griffin expands into the market for leveraged loans and high-yield, high-risk bonds.
The new group, part of its Citadel Securities division, will be based in New York, according to Peter Santoro, head of institutional markets for the unit.
The Chicago-based firm is setting up the sales and trading platform as part of a larger push into investment banking. The move follows the loss of Lehman Brothers Holdings Inc.,Merrill Lynch & Co. and Wachovia Corp. during the financial crisis, which eliminated trading partners and debt underwriters.
