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.