Deutsche's gain is BarCap's pain

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Deutsche's gain is BarCap's pain

Deutsche Bank's hire of Gary Jenkins, former global head of credit research at Barclays Capital, and his former European strategist colleague, Jim Reid, is a coup for the bank and a big blow for BarCap, which had wanted the pair to return.

Jenkins left to go on sabbatical in April, following his controversial replacement as global head of credit research by Mark Howard, formerly of Lehman Brothers in New York. Reid followed him last month.

Jenkins will become European head of credit research and fundamental strategy towards the end of the year, following a holiday in Australia. Reid will start as Deutsche's European credit strategy head in September. Friends of the pair say they see it as the perfect opportunity and are pleased to be working

together again.

Jenkins and Reid had formed the backbone of BarCap's credit research effort  and between them had put in over 25 years' service. At BarCap, Jenkins, Reid and their credit research team were consistently ranked as one of the best in Europe.

Deutsche's head of global markets research, David Folkerts-Landau, says he is thrilled to welcome the pair, who 'stand head-and-shoulders above their peers in the fundamental strategy domain'. Their arrival will also bolster Deutsche's credit research, following a number of senior departures.

Yet the joint defection to Deutsche will be a double blow for BarCap as insiders there say the decision to appoint Howard as global head instead of Jenkins was 'far from unanimous' among management at the top of the investment bank.

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