Wall Street Bond Desks Ramping Up

Bond desks are ramping up again with several Wall Street firms looking to expand their asset-backed trading.

UBS and Morgan Stanley, which retreated during the financial crisis, are now hiring fixed-income staff, with an emphasis on sales people—especially in asset-backed securities, curriencies and credits.

So far, UBS has added 350 new traders and salespeople over the last 12 months; Morgan Stanley has hired 250 people in new fixed income and is expected to hire 200 more.

Deutsche Bank, which did well during the financial crisis(one of the few firms to call the short), recently announced the hiring of Jeff Mayer as global head of marketsfor North America to streamline fixed-income trading desks.

Since the beginning of the year, the firm has hired 100 global market employees in sales and trading.

Compared to last year, business in asset-backed securities is way down. But in areas like commercial mortgage backed-securities, it's up—that is only based on a handful of deals, like The Redwood Trust.

An interesting point: the same people who worked in the bond unit and mortgage unit for Bear Stearns, which were perceived to be the company's biggest liablilty, are now either totally running or partially running a lot of the major desks on Wall Street.

Related Links:

"The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.