Deutsche Bank moved the trader who was leading the wind-down of a $1.1tril credit-default swaps portfolio to a role in emerging-market bonds, according to an internal memorandum obtained by Bloomberg.
Bloomberg News reports that Aditya Singhal, described as “one of the most profitable traders” at Deutsche Bank’s European credit business, will become head of local markets trading for central and eastern Europe, the Middle East and Africa, according to the memo.
Tijen Gumusdis, co-head of CEEMEA local markets, will become head of flow trading for the region. Charlie Olivier, a spokesman for the Frankfurt-based lender, confirmed the memo’s contents.
Deutsche Bank CEO John Cryan has dumped unprofitable clients, exited countries and pulled back from some trading businesses in an attempt to cut expenses and meet tougher capital rules. This includes selling off a portfolio of complex credit-default swaps to rivals including Citigroup and JPMorgan Chase, a process which Singhal helped oversee.
'In late 2014, he took responsibility for the wind-down of the EU/US CDS books and subsequently delivered substantial and cost-effective' reductions in the size of the portfolio, head of emerging-market debt trading Sean Bates wrote in the memo.
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