‘It’s a step in the right direction’.

Nomura is cutting about 60 fixed-income and credit-derivative positions at its global markets operation in London, a person familiar with the situation said on Monday.

Bloomberg News reports that the cuts include high-yield bond traders and analysts, according to three other people with knowledge of the matter.

CEO Koji Nagai has pledged to post $400m in pretax profit overseas for the year ending March. Japan’s biggest brokerage earned only $21.6m abroad in the first quarter – and lost money in Europe – as fixed-income business slowed amid a drop in liquidity.

‘The move increases the chances that Nomura can reach the profit target’ said Koichi Niwa, a Tokyo-based analyst at SMBC Nikko Securities. ‘It’s a step in the right direction as the company tries to allocate resources appropriately’.

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Nomura Said to Cut 60 Jobs in London Focused on Fixed Income

Banks Said Poised to Win Delay of U.S. Curbs on Overseas Swaps