Morgan Stanley is hiring. It wants to improve its performance in fixed income flow trading, and according to CFO Colm Kelleher, is ‘addressing the flow and market share issues by hiring talent.”
Specifically, Kelleher says it’s hiring more into DMA, rates and FX.
Jack DiMaio , former head of US fixed income for Credit Suisse has already joined as global head of interest rate, currency and credit trading, and headhunters say the bank has mandates out in London for “considerably beefing up” the rates sales and trading team.
But will anyone else want to work for Morgan Stanley now that it appears to be rather too risk averse for its own good?
According to various analyses Morgan Stanley needs to take more risk if it wants to replicate the performance of
Goldman Sachs successful peers.
However, Felix Salmon points out that Morgan Stanley is already taking more risk than it used to.
The bank’s problem may not, in fact, be risk aversion, but the fact that it’s rather slow moving. The Wall Street Journal says that Morgan Stanley may have missed the fixed income flow boat. Headhunters point to a history of late build-ups followed by redundancies when revenues aren’t forthcoming.
“They tend to come and go with the premium product of the moment,” says one. “They built high yield and leveraged finance around three times, and almost shut it down on each occasion when markets faded.”