Merrill Lynch's head of municipal bond research team in the US has quit to join hedge fund 1861 Capital Management, a move that underscores the growing force of alternatives managers in the municipal market.

Kurt van Kuller, one of the market's most experienced analysts, joined the New York-based fund this week as an assistant portfolio manager. He worked at Merrill for over 16 years, latterly as a senior director and manager of the municipal bond credit research group.