As John Cryan mulls steps to restore growth at Deutsche Bank, he’s counting on U.S. companies’ appetite for ever more debt to help lead the charge.
Bloomberg News reports that the bank added 24 managing directors and directors at its U.S. corporate finance business this year, a record hiring pace, according to Mark Fedorcik, co-head of Deutsche Bank’s global capital markets unit. Among the goals: to become a top arranger of leveraged loans again, the risky debt that has surged amid low interest rates and the prospect of a rollback of post-crisis regulations.
“Next year will be a robust one for U.S. leveraged finance and we’re going to capitalize on this,” Fedorcik said in an interview. “It’s an area that we’re going to continue to invest in and regain a top-five position.”
Deutsche Bank has slid to ninth place among arrangers of U.S. leveraged loans this year, a lucrative business where it used to be among the top five before the financial crisis, as Cryan, the bank’s chief executive officer, reduced risk and expenses. With pressure rising on the 56-year-old Briton to reverse three straight quarters of declining revenue and deploy fresh capital, he is encouraging employees to take more risk again.
Hit the link below to access the complete Bloomberg News article: