|Bid||171.50 x 0|
|Ask||188.00 x 0|
|Day's range||179.18 - 182.32|
|52-week range||1.87 - 210.45|
|Beta (5Y monthly)||1.49|
|PE ratio (TTM)||12.21|
|Forward dividend & yield||0.01 (0.55%)|
|Ex-dividend date||25 Feb 2021|
|1y target est||N/A|
(Bloomberg) -- Credit traders who feel stiffed after a banner year are finding a hot market for their services.Hedge funds fresh off their best performance in years are aggressively hiring, recruiters say. Banks including Barclays Plc, Goldman Sachs Group Inc. and HSBC Holdings Plc have suffered senior defections to the buy side in recent weeks. Barclays has tried promotions and pay promises to stem defections.“Whoever writes the biggest check is the winner,” Jason Kennedy, chief executive officer of U.K.-based recruiting firm Kennedy Group, said in an interview. “There is no loyalty left.”While spring moving season is nothing new on Wall Street trading desks, observers say star performers in the world of corporate credit are in particularly high demand. Adding to the turnover is discord after banks that saw trading revenue surge in 2020 kept a lid on pay because of struggles in other parts of their business. Hedge funds are trying to follow up a divisive period of pandemic-driven earnings with new strategies that benefit from outside expertise.“This year, they have targeted the credit space,” Kennedy said. “That’s why the market is moving so much.”The pressure has been felt at HSBC, where a swath of senior traders left the U.S. business in recent months as the bank restructures operations in New York and around the world. At least 10 traders are leaving the credit desk, and a spokesman has said the group was actively hiring.At Barclays, departures from the credit desk have included Ovie Faruq, director in U.S. high-yield cash and derivatives trading in New York; Shrut Kalra, head of European investment grade trading; Taymour El Chammah, global head of macro credit trading; and John Cortese, co-head of U.S. credit trading. Several are joining hedge funds.In response, the London-based bank has offered some of the team promotions and assurances about future pay. However, the tone at the top is one of caution on costs. CEO Jes Staley increased bonus accruals across the bank in the first quarter, but has said that this spending “is a very controllable number so if our performance weakens we can take it right down again.”Goldman’s head of European macro credit trading Jasdeep Singh Aneja is leaving to join hedge fund Millennium Management.“Hedge funds are hot, they have had a good few months and they’ve raised a tremendous amount of money,” said Alan Johnson, managing director of the Wall Street compensation consultancy Johnson Associates. “If you’re a trader, they’re an attractive destination. They’re real competition for the really good or the really great traders.”Credit trading was a boon for investment banks last year as the pandemic sent bonds on a roller coaster. The trading desks buy and sell bonds and loans issued by corporations and also deal in derivatives linked to their financial health.A record $39 billion of U.S. corporate debt changed hands on average every day last year, helping the biggest banks generate the most credit-trading revenue since 2013, according to data from the Securities Industry and Financial Markets Association and Coalition Development Ltd.Hedge funds are also pursuing these gains. Oaktree Capital Management this week teamed up with investment manager Schroders to launch a global multi-strategy credit portfolio.The strategy is not without its risks: Earlier this month a slew of hedge funds took out short positions on European bonds they saw as overstretched.The turnover “isn’t specific to credit,” and traders have been on the move for some time, said Ilana Weinstein, who runs Wall Street recruitment firm IDW Group LLC.“Migration of sell-side to buy-side has been happening since the crisis with disappointing bonuses, cost-cutting and reduced ability to take risk at the banks,” she said. “The question is why someone is still sitting on sell-side if they want to be in a risk-taking versus franchise trading seat. I would argue much of the best trading talent left long ago.”(Updates with Johnson’s comment in 10th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- JPMorgan Chase & Co. has hired Riaz Ladhabhoy from Barclays Plc to cover consumer and Internet investment banking, according to a memo reviewed by Bloomberg News.Ladhabhoy will partner with Chris Grose, who leads the Disruptive Commerce Group within tech investment banking. Ladhabhoy will be based in San Francisco and report to Madhu Namburi, global head of technology investment banking, the memo said.A representative for JPMorgan confirmed the contents of the memo. A representative for Barclays declined to comment.Ladhabhoy, a managing director, had been head of internet banking for the Americas at Barclays, according to the memo. He joined Barclays from Deutsche Bank Group AG, according to Financial Industry Regulatory Authority records.“With over 17 years of investment banking experience and extensive knowledge and relationships in the sector, we are excited to welcome Riaz as we expand our leading technology IB franchise,” Namburi said in the memo Friday.Ladhabhoy has worked with technology companies including Uber Technologies Inc., DoorDash Inc., Unity Software Inc,, GoodRx Holdings Inc., Schibsted, Match Group Inc. and Pinterest Inc., according to a person familiar with his coverage area. He’s also worked with private equity firms including Silver Lake, Blackstone Group Inc., Clearlake Capital, Francisco Partners and Siris Capital, the person said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Barclays Plc has been hit by a string of departures among senior credit traders in New York and London unhappy that their bonuses failed to reflect the pandemic profit surge.The bank has offered promotions to some employees and given assurances over future pay in an attempt to address their concerns, according to people familiar with the matter, who asked not to be identified discussing private information.Departures from the credit desk include Ovie Faruq, director in U.S. high-yield cash and derivatives trading in New York, the people said. Bloomberg News has previously reported that Shrut Kalra, head of European investment grade trading, Taymour El Chammah, global head of macro credit trading, and John Cortese, co-head of U.S. credit trading, left last month. They all declined to comment.Faruq, Kalra, Cortese and spokesperson at Barclays declined to comment, while El Chammah did not respond to requests for comment. Bonuses in credit trading rose by as much as 20% over the past year, the people said. However, the increase did not keep pace with the improvement in some teams’ performances, according to the people.Across the bank, Barclays granted annual bonuses worth 1.09 billion pounds ($1.54 billion), down 3% year-on-year following an overall 30% drop in pretax profits in the wake of the pandemic.Money MakerCredit traders buy and sell bonds and loans issued by corporations and also deal in derivatives linked to their financial health. They thrived as companies were slammed by the pandemic before central banks intervened, sending bonds on a rollercoaster. A record $39 billion of U.S. corporate debt was bought and sold on average every day last year, helping the biggest banks generate the most credit-trading revenue since 2013, according to data from the Securities Industry and Financial Markets Association and Coalition Development Ltd.The business is a key money maker for Barclays. Led by Adeel Khan, the unit’s best performers included traders in so-called flow credit and U.S. high-yield bonds, the people said. Khan has recently made several promotions within the team. Last month, London-based Finbar Cooke and Michael Khouri were made co-heads of credit trading for Europe, while Hong Kong-based James Roberts took on the role for Asia.While the bank stopped disclosing results for the unit several years ago, the credit business generated about 38% of the wider fixed-income division’s revenue for 2016 and 2017 combined, filings show. The division, which also houses teams dealing in government bonds and currencies, reported revenue of 5.1 billion pounds ($7.2 billion) last year, the most in almost a decade.On an earnings call last month, Chief Executive Officer Jes Staley said the bank has the ability to cut bonuses to address investor concerns about its growing costs. “It’s a very controllable number so if our performance weakens we can take it right down again,” he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.