30.7.12

Deutsche Bank Head Debt Trader Cornut Leaves for Hedge Fund

Antoine Cornut, Deutsche Bank AG (DBK)’s head of flow-credit trading in the Americas and Europe, has left the bank for a hedge fund as regulations designed to curb risk- taking transform the corporate-bond market.
Cornut departed this week, according to two people familiar with the move. Tom Hartnett was named to oversee investment- grade credit in North America in addition to interest-rate products. Tom Higbie, a credit analyst, departed this week for hedge fund Solus Alternative Asset Management LP, where he’ll be a managing director, said one of the people, who asked not to be identified because the changes haven’t been made public.
Lenders responding to the Dodd-Frank and Basel III financial-regulation overhauls are reducing their holdings of corporate debt, with primary-dealer inventories dropping 83 percent from a 2007 peak to $39.9 billion as of July 18, Federal Reserve data show. At least 10 credit traders have left Deutsche Bank’s New York trading desk since the beginning of 2011 as the lender limited cash bonuses.
Frankfurt-based Deutsche Bank, the third most-active underwriter of corporate bonds worldwide this year, and Hartnett declined to comment, said Duncan King, a spokesman in New York. Cornut didn’t respond to messages left today on his mobile phone. Higbie also declined to comment.

http://www.bloomberg.com/news/2012-07-27/deutsche-bank-head-debt-trader-cornut-leaves-for-hedge-fund.html

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