Here's who'll hire you when you lose your fixed income job. Why Deutsche's cuts will be diminutive
Fixed income traders at large European investment banks have reason to feel a little twitchy: the first half of 2015 wasn't very kind, especially in credit. But while large investment banks scrutinize their cost base, at least one house is hiring: Citadel. Citadel is building a European fixed income market making business.
Paul Hamill, head of fixed income, commodities and currencies for Citadel Securities, told the Financial Times that Citadel intends to build a European swaps business, including dollar swaps, euro swaps, and yen swaps. It also proposes to enter the European government bonds and credit derivatives markets.
Hamill didn’t mention hiring. However, Citadel has already poached Brian Oliver, J.P. Morgan’s former head of futures and options clearing sales, to help build the business. The process is likely to be protracted – the FT says Citadel won’t fully launch its European fixed income operation until April, which gives it plenty of time to pick up anyone let go from big banks in the interim.
Separately, Reuters suggests that Deutsche Bank won’t be making massive changes when John Cryan divulges his strategy plans at the end of October. It can’t afford it. Instead, with an eye to the 3bn euros of outstanding fines and settlements faced by Deutsche, Reuters says Cryan will continue with the existing strategy of winding down the bad bank – slowly.
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