March 19 (IFR) - Credit Suisse on Monday sacked the head of its New York rates trading team along with about a dozen traders and salespeople, according to two sources at the bank.
Head trader Jim O‘Brien as well as almost the entire New York rates trading desk were shown the door. A spokesman for Credit Suisse declined to comment.
“They have obliterated our rates desk,” one trader told IFR.
Rates traders are market-makers in interest-rate based products such as Treasuries and corporate bonds who make bets on the direction of interest rates.
But it has been a tough time for rates traders across Wall Street ever since the Federal Reserve instituted its low-interest-rate policy, which has reduced volatility and made it harder for them to make money.
Credit Suisse will no longer make markets in certain segments, even though it had a profitable year in 2012.
In October, Swiss bank UBS said it was exiting parts of its fixed-income business to help meet tough new capital requirements imposed after the global financial crisis.