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Morning Coffee: Deutsche Bank bonuses bad, but not that bad. The hotness of Morgan Stanley

It's bad at Deutsche. But not that bad

It's bad at Deutsche. But not that bad

If bonuses should be bad anywhere, then they should be bad at Deutsche Bank. Share on twitter As we reported only recently, the German bank is in a race to cut costs faster than its regulatory spend rises. Something needs to be done. – RoE in the corporate and investment bank is declining rather than increasing. And in the past year Deutsche has hiked salaries across the bank by €300m and indicated that it will cut bonuses by a similar amount.

In the circumstances, therefore, the fact that Bloomberg is reporting a mere 4% drop in the Deutsche Bank 2014 bonus pool actually looks quite OK. Yes, Bloomberg says some people in Deutsche’s fixed income sales and trading could have their bonuses docked by 10%-15%, but that’s nothing given headhunters had predicted reductions of 15%-30% were in order. Deutsche’s bankers may even want to celebrate.

Separately, Morgan Stanley’s fixed income trading business may not be having the best of times, but it’s probably having a better time than macro hedge funds. We assume that this is why Kay Haigh, a former Deutsche fixed income trader who quit banking in 2011 to found a macro hedge fund (Avantium) is back in banking. Bloomberg reports that Haigh has joined Morgan Stanley as global head of emerging markets in London within the FX business after Avantium closed down. We suspect that more macro traders in hedge funds may be tempted to make the same journey very soon.

Meanwhile:

RBC Capital just hired a new head of its French office and plans to expand its presence in France very soon. (Global Capital)  

SocGen plans to expand its corporate and investment bank in Germany. (Global Capital) 

Interdealer broker Tradition appears to be hiring. (The Trade News)  

BNP Paribas has no intention of cutting costs more than already planned. (Reuters) 

People are leaving the London office of Claren Road, a credit hedge fund majority owned by the Carlyle Group. (Bloomberg) 

Two more senior people are leaving London private equity fund Permira. (Financial News) 

Goldman Sachs has the worst corporate reputation in America. (Bloomberg) 

Jefferies’ CEO won’t be accepting a bonus this year. (Reuters) 

So, you think you could pass CFA Level I? (The Tally) 

As a working father, spending more time with your children will boost your career. (WSJ)

How long before you earn as much as a top footballer? (BBC) 

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