Debt trading poll: Market share
Debt trading poll: Best for liquidity provision
Debt trading poll: Credit derivatives indices
Debt trading poll: Methodology
Now multiple asset classes have been drained of the liquidity they were swimming in last year. Many trading houses have been caught napping. Several members of the banking nobility have suffered heavy losses in credit trading. Merrill Lynch fell foul originating CDOs with sub-prime mortgages, and lost its head of fixed-income trading along with its money. Osman Semerci was followed out the door by the co-head of fixed income, currencies and commodities, Dale Lattanzio. Citi has cast off Tom Maheras, co-head of banking and markets. And there are others. Deutsche Bank announced billions of euros-worth of losses (€2.2 billion of charges relating to leveraged loans, structured credit products and trading), although Josef Ackermann, Deutsche Bank’s chief executive, has been reported as saying that the German bank sees substantial opportunities in investment banking after this period of correction.
One would hope so. Deutsche Bank has slipped from fourth in the poll’s market share category to 13th this year, although the bank did score well with investors in the poll’s other categories.