Deutsche Bank Focuses on Fixed-Income Unit for Job Cuts

Amid a slew of job cuts, Deutsche Bank AG isn’t finished, with the German lender to cut dozens of traders and salespeople in its global fixed-income ranks, according to a report from Bloomberg.

The top German lender has been struggling to retain profitability for years, and it continues curtailing its activity at the investment bank. So far, the fixed-income unit at the bank has been largely spared from the first round of reductions. As Finance Magnates reported in July, the German firm revealed that it was cutting close to 18,000 jobs, overall.

However, according to people familiar with the matter, who spoke to the news outlet and asked to remain anonymous, Deutsche has let go of traders in high Yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a Read this Term, distressed and investment-grade debt teams in both New York and abroad.

According to one of the sources, the reductions follow on from underperformance in some of the divisions. This includes the credit business in Latin America, which is being eliminated entirely.

The job losses in the fixed-income unit do not come as a complete surprise. As we previously analyzed, Deutsche Bank was looking to cut staff in its Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term and fixed income units.

In July, Deutsche Bank said in a statement that it plans to reduce the amount of capital used by its Fixed-Income Sales & Trading business, in particular, Rates. The company’s FX prime brokerage business is instead set for a boost.

Deutsche Bank cuts

Already, the German bank has lost senior staff in its fixed-income department. This includes John Pipilis, who led the unit globally, and Paul Huchro, a credit trading executive who was reported to have left the firm this week.

In its Latina America unit, the managing directors Eric Eisner and Paul Delaney will depart the lender as part of the job cuts. In addition, Timothy Fischer in leveraged credit sales, and Andrew Meany in credit trading are also set to leave, according to the report.