Deutsche Bank Suspends CMBS Traders; Losses Could Top $30 Mln

  • 01 Dec 2002
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Deutsche Bank has placed two commercial mortgage-backed securities traders, Jake Markman and Paul Mashikian, on administrative leave pending an investigation into mispricings of the firm's secondary trading positions, according to firm spokesman Ted Meyer. An individual with knowledge of the situation says losses incurred as a result of the traders' activity will amount to over $30 million by the time they are fully unwound.

The problem reportedly stems from the hedging methodology the pair used to hedge the firm's portfolio of secondary market CMBS positions. Meyer did not comment on the amount, but said "no customers sustained any losses, and any losses sustained by the firm will not have a material effect on earnings."

The two traders have not been on the desk since last Thursday according to several colleagues and could not be located for comment. Their secondary trading responsibilities have been divided up among the remaining traders. Meyer says that Justin Kennedy remains the head of the trading desk. Kennedy did not return a phone call seeking comment.

  • 01 Dec 2002

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 4,755 19 11.75
2 Citi 4,288 14 10.60
3 Rabobank 2,633 4 6.51
4 Goldman Sachs 2,615 4 6.46
5 Barclays 2,603 8 6.43

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 24 Jul 2017
1 Bank of America Merrill Lynch 57,945.74 181 12.35%
2 Citi 57,243.86 174 12.20%
3 Wells Fargo Securities 48,214.86 152 10.28%
4 JPMorgan 33,301.70 114 7.10%
5 Credit Suisse 25,010.27 80 5.33%