Date
24 September 2017
Banks and brokerages in the US are bolstering their trading desks on expectations for a pick-up in bond market activity. Photo: Bloomberg
Banks and brokerages in the US are bolstering their trading desks on expectations for a pick-up in bond market activity. Photo: Bloomberg

Debt trading revival hopes said to spur hiring spree on Wall St

Financial firms on Wall Street have started beefing up their trading desks again, betting on a pick-up in the credit markets, Bloomberg News reported Friday.

Nomura has added ten people to its US corporate debt team this year, an increase of about 10 percent, and plans to expand further, the report said, citing Michael Guarnieri, the bank’s global head of credit products in New York. 

“Volatility and the so-called tail risks always sneak up on you and are always something you don’t think is coming,” Guarnieri was quoted as saying in a phone interview. “We’re not blind to the fact that volumes are low, but we are investing over the long term.”

Others are on the same track. Deutsche Bank has just raised US$11 billion in capital in part to bolster its debt-trading business, after earlier this month announcing four new members for its credit unit, the report said.

In another case, Guggenheim Securities roped in a corporate-debt team from Lazard Capital.

With interest rates expected to finally go up sometime soon, debt trading is poised to become more lucrative, the report noted.

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