Morning Coffee: Here's who'll hire you when you lose your fixed income job. Why Deutsche's cuts will be diminutive

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Citadel fixed income Europe

Citadel is spreading out a safety net for European fixed income traders.

Fixed income traders at large European investment banks have reason to feel a little twitchy: the first half of 2015 wasn't very kind, especially in credit. But while large investment banks scrutinize their cost base, at least one house is hiring: Citadel. Citadel is building a European fixed income market making business.

Paul Hamill, head of fixed income, commodities and currencies for Citadel Securities, told the Financial Times that Citadel intends to build a European swaps business, including dollar swaps, euro swaps, and yen swaps. It also proposes to enter the European government bonds and credit derivatives markets.

Hamill didn’t mention hiring. However, Citadel has already poached Brian Oliver, J.P. Morgan’s former head of futures and options clearing sales, to help build the business. The process is likely to be protracted – the FT says Citadel won’t fully launch its European fixed income operation until April, which gives it plenty of time to pick up anyone let go from big banks in the interim.

Separately, Reuters suggests that Deutsche Bank won’t be making massive changes when John Cryan divulges his strategy plans at the end of October. – It can’t afford it. Instead, with an eye to the 3bn euros of outstanding fines and settlements faced by Deutsche, Reuters says Cryan will continue with the existing strategy of winding down the bad bank – Slowly.

Meanwhile:

Paul Marshall Ian Wace are in line for a $150m (£98m) payday after selling a stake in their hedge fund Marshall Wace to KKR. (Independent) 

Canaccord Genuity has been hiring for its European investment banking team. (Stockhouse) 

A Citi trader says he was pressured by senior staff into using electronic chat rooms to share information with traders at other banks. (Bloomberg) 

The EU says time spent travelling to and from work should count as part of the working day. (Independent) 

Credit Suisse has been hiring for its equities team in Dubai. (Bloomberg)

Large US investment banks are spending $100m on their Bloomberg terminal contracts. (NY Times) 

At Goldman, more than half of the people who have Bloomberg terminals use them primarily for chat and other simple functions. (NY Times)

This is not a good time to be working in European equity research. (Greenwich)

Meet the US hedge fund managers who only charge fees equivalent to 0.5% of assets under management, who only charge performance fees of 20% if they beat the S&P benchmark, and who refund the previous year’s fees if performance falls short of the benchmark the following year. (WSJ)

Ex-Goldman Sachs commodities partner reinvents self at Nordic real estate fund. (Financial News) 

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