KGS-Alpha Capital Markets has been rebranded as BMO Capital Markets
BMO Financial Group has completed its acquisition of KGS-Alpha Capital Markets, a New York-based fixed-income broker-dealer specializing in US mortgage (MBS) and asset-backed securities (ABS) in the institutional investor market.
Following the close of the transaction, KGS has been rebranded as BMO Capital Markets.
BMO Financial said the acquisition complements BMO Capital Markets' existing MBS trading business and immediately makes the company a top-tier dealer in securitized products with special emphasis on agency-backed residential and commercial MBS products.
The acquisition was initially announced in May. Terms were not disclosed. KGS has 135 employees, including 84 sales and trading professionals concentrated in New York. The business has seven other offices across the US.
"The acquisition of KGS is highly complementary to our strategy, leverages our existing capabilities, and allows us to better serve our clients,” BMO Capital Markets CEO Pat Cronin said in May. “The size and scope of the MBS bond market represents a tremendous opportunity to continue to diversify our platform, and grow revenues with key new initiatives."
BMO Financial also said when it announced the deal that the KGS management team and sales and trading professionals will become part of BMO Capital Markets' trading products group led by Kelsey Gunderson. Corporate support area professionals will report to their respective areas within BMO.
