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UPDATE 1-Credit Suisse lays off around 12 from NY rates team
March 19, 2013 / 8:50 PM / 5 years ago

UPDATE 1-Credit Suisse lays off around 12 from NY rates team

By Christian Murray

March 19 (IFR) - Credit Suisse on Monday laid off 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 decimated our rates desk,” said one trader. “Actually, decimated wold imply 9 out of 10 remain. They have obliterated our rates desk.”

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.

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