Jefferies has made a senior appointment to its collaterised debt obligation trading team, in a move intended to capitalise on increasing demand for a type of security once blamed for playing a central role in the financial crisis.

The US investment bank said it had hired Erez Biala in the newly-created role of managing director and global co-head of collaterised loan obligation and collaterised debt obligation trading. The team is part of the firm's wider global mortgage and asset-backed securities group.