Commerzbank Securities' hemorrhaging of credit derivatives professionals is calling into question the firm's ability to retain the remaining staff and maintain its clients, according to rival bankers. One concern is that with experienced flow credit derivatives traders leaving, structured credit staff, including sales, structurers and traders will become disgruntled that they do not see the flow necessary to structure exotic products and will also resign, according to rival bankers. The exodus reportedly started because the firm paid low bonuses, according to Commerzbank staffers. Mike Staveley, head of credit trading, said the firm has 65 credit traders globally and is shifting resources internally to cover vacancies. Neil Brazil, a spokesman, declined comment.
"If Commerzbank don't very rapidly replace the recent CDS flow departures, they will find it increasingly difficult to price and structure their structured credit products," said Simon Barker, a recruiter specializing in structured credit products at Michael Page City in London. "Under these circumstances, it would become easy to lure away the experienced structured credit staff from the bank, and let's face it, there's a lot of houses looking to hire in this area."
The most recent departures include Russell Marsh, capital structure arbitrage trader in London, who is joining KBC Alternative Investment Management in London as a trader, and Kristian Sharp, head of credit trading for North America in New York, who has joined UBS Warburg in London as an executive director and senior credit derivatives trader. Additionally, Steven Metro, senior salesman, has joined Credit Suisse First Boston as a director in credit-default swap trading in New York.
These derivatives professionals are three in a long line of recent departures. Brett Golledge, head of trading for corporate credits went to Deutsche Bank (DW 4/21). Neil Murray, CDS trader, and Colin Macintosh, leveraged funds salesman, moved to the capital markets team at the Royal Bank of Scotland (DW, 4/21). In addition, Simon Prest, CDS trader, left for JPMorgan (DW, 4/28).
