Fixed income traders fearful for their futures now have a whole new career path open to them: they can move into equities. A senior credit trader at Citigroup has shown the way.
Financial News reports that Citi has finally - after two months of looking, appointed a replacement for Andy Thompson, its former European head of equities who left suddenly "to spend more time with his family" back in July. Weirdly, however, Thompson's replacement isn't another senior equities professional like himself but Tim Gately, Cit's European head of credit trading since 2008.
Gately, previously a high yield and distressed debt trader at Goldman Sachs, seems to have made a canny career move. Analysts at JPMorgan are predicting that revenues at banks' fixed income currencies and commodities divisions will fall by a further 3% next year, while equities revenues are expected to rise. But this is not the only reason why Gately may not be the last fixed income trader to cross the floor: "The fundamental changes in regulation and market structure has brought credit and equity businesses closer together," he told Financial News. In other words, the more that fixed income trading takes place electronically and via exchanges, the more that it looks like equities trading. The two skill-sets are becoming interchangeable.
Separately, anyone hoping that a Scottish 'Yes' will lead to Lloyds and RBS shifting their 28,000 combined Scottish jobs to London soon, is due to be seriously disappointed. "These banks are already run from London," Bernstein analyst Chirantan Barua told Bloomberg. "There won’t be a massive cost to relocate thousands of people. The costs will come from moving their contracts -- everything they’ve signed is incorporated in Edinburgh, which will end up with banks paying huge checks to accountants, consultants and lawyers doing the transfer work.”
Alex Salmond sent this letter to the Prime Minister accusing him of trying to destabilize financial services in Scotland. (Twitter)
One in eight people in Edinburgh work in financial services. (Bloomberg)
Under current legislation, it could take over a year for Scottish banks to move to England. (Financial Times)
After some, "in-depth due diligence", Rohan Ramchandani - the first Citi trader to be fired on suspicion of manipulating FX prices, has been hired by London Capital Group, an online trading services provider. He will only be able to trade unregulated spot FX products. The team is expected to 'grow' over the coming weeks. (WSJ)
Moelis just hired a new head of German banking from SocGen. (Swissinfo)
BTG Pactual prop trader plans hedge fund. (Finextra)
Jamie Dimon will resume his normal schedule in October. (WSJ)
The man who made a billion from Blackstone's buyout of Hilton Hotels wears a plastic Timex watch. (Bloomberg)
10 rich people who live normal lives. (TheRichest)
Ex-Credit Suisse banker Malik Karim always intones employees at his boutique (Fenchurch Advisory Partners) to earn more than him. They never do. (Financial News)
Common banking resume questions, answered. (Wall Street Oasis)
Top model and Playmate of the Year 1997, discusses her trading strategy. (YouTube)
A £500k job that will ‘destroy’ you. BofA cutting fixed income traders
JPMorgan, Credit Suisse, Citi, Barclays all say things are getting better. 10,000 finance internships here
Jefferies, Barclays give juniors the upper hand. Senior bankers can’t get jobs, promotions