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Bloomberg
Credit Suisse group is losing four traders from its high-yield and distressed-debt desks just as interest-rate hikes, inflation and volatile markets heighten the need for such expertise.
The traders will join British lender Barclays Plc in New York as it beefs up its own credit desks, according to people with knowledge of the moves. Three of those departing are managing directors including high-yield head Daniel Brand, high-yield trader Brandon Porter and Ilya Feldman, who focuses on special situations and distressed debt.
Alex Lentz, a director who trades high-yield corporate bonds and derivatives, is returning to Barclays after about a year at Credit Suisse, according to the people and his LinkedIn profile.
The exits further hobble Credit Suisse’s New York trading desk, dealing another blow to the Swiss lender that is struggling to move past quarterly losses and scandals that led to management overhauls and dented investor confidence. The bank lost its head of US credit-derivative trading, David Goldenberg, last year to Barclays.
Credit desks have had a difficult start to the year and are hoping for a surge in activity with fresh bouts of volatility. Market uncertainty is set to increase volatility, as the Federal Reserve combats historically high inflation and mounting recession fears. The pile of distressed debt is rising while cooling investor interest is funding riskier ventures.
Credit Suisse said during an investor day in June that it would need to take mark-to-market losses on some of its leveraged-finance positions. The bank also warned that it would likely post a second-quarter loss in its investment bank and for the company as a whole as widening credit spreads and low capital-markets issuance tamper performance.
The bank has also seen an exodus in its European credit trading desk with the departure of managing director Jonathan Moore, who was the London-based co-head of global credit products, and head of EMEA credit trading Basil Eggenschwyler. Credit traders including distressed-debt star trader Hamza Lemssouguer and Kru Patel also recently left the bank.