The former head of U.S. inflation trading at Deutsche Bank, who left following a reported $60m loss at the division, has just re-emerged in a new role at Bloomberg.
Jacob Bourne joined Deutsche Bank as head of U.S. inflation in October 2016 from Scotiabank, where he held the same role. However, he left in July this year just a few months into the role, after Deutsche Bank's traders reportedly made a bad bet on U.S. inflation that lost as much as $60m. Alex Li, Deutsche Bank's head of U.S, treasury and rates strategist, also left the bank in June to become head of U.S. rates strategy at Credit Agricole in New York.
The loss hit Deutsche's rates trading business, in which inflation trading sits, during the second quarter, which was was already struggling thanks to a "difficult quarter for market-making", the bank said at the time. Deutsche's $60m loss was reportedly down to a trade that used a derivative product tied to U.S. inflation.
Considering it was Bloomberg that broke both the news of the $60m loss and Bourne's departure, he's taken a curious new career direction. He is a strategist within Bloomberg's news division, according to his LinkedIn profile, a job he took earlier this month.
Bourne is an experienced fixed income portfolio manager, and his career spans both the buy-side and sell-side. He joined Scotiabank in July 2015, and spent over a year there before moving across to Deutsche Bank. Before Scotiabank, he was a portfolio manager at hedge fund Graham Capital Management, and also spent nearly four years as head of U.S. fixed income at Capstone Investment Advisors, the $5.2bn hedge fund.
There's been a lot of churn at within Deutsche Bank's inflation trading team over the past few months. Stephane Salas, the head of inflation trading at Deutsche Bank in London, left October for a similar role at BNP Paribas.
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