Lehman in equity and debt move | FT

The growing convergence of debt and equity businesses on Wall Street was highlighted on Tuesday as Lehman Brothers named two managers to oversee all its capital-raising activities.

An internal memo said Lehman was changing its reporting structure so that underwriters of bonds, stocks and loans would all report to two new heads of global finance.

The new co-heads - Jeff Weiss, 42, currently head of debt capital markets, and Larry Wieseneck, 37, now head of equity capital markets - will report to Skip McGee, the head of investment banking.

The changes at Lehman are the latest sign that many of the traditional divisions of responsibility at Wall Street companies have outlived their usefulness.

For example, the growing popularity of convertible bonds - fixed-income instruments with a stock option attached - has increased the pressure on equity and debt teams at investment banks to work together.

This year, US convertible bond issues have raised $34bn, according to Thomson Financial. By comparison, initial public offerings of stock have brought in $734m.

The separation of bond underwriters into investment-grade and high-yield teams is also being called into question.

The Lehman revamp stops short of combining product specialists into single teams.

The memo from Joe Gregory and Brad Jack, co-chief operating officers, said the shift "formalises the partnerships that have developed among the product groups".