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LONDON – Deutsche Bank is boosting its credit trading division to prepare for the end of the ultra-loose monetary policies enacted by central banks in response to the 2008 financial crisis.
The German lender hired Paul Huchro, a veteran of the US credit trading team at Goldman Sachs, as global head of investment grade credit trading.
Huchro, who spent 30 years at Goldman Sachs, also becomes head of high yield credit trading in the US and Europe.
Gavin Colquhoun, Deutsche Bank’s head of European credit trading, said: “We expect to see client activity in credit increase as monetary stimulus is withdrawn. The hires we have made over the past 18 months reflect our commitment to being a leading flow credit house.”
The US Federal Reserve is expected to hike rates several times next year and in 2019 and shrink its $4.4 trillion balance sheet as part of a retreat from the monetary stimulus that has characterised policy in the years since the 2008 crisis.
Meanwhile, the European Central Bank is widely expected to cut its asset-purchase program within the next few weeks and the Bank of England has warned market participants that it may raise rates as soon as November.
Deutsche Bank said that over the last 18 months it has made 21 new hires in European investment grade bond sales, trading and research, “in response to client demand,” and 19 US hires in the same period.
US operations have been a key focus for Deutsche Bank, with CEO John Cryan taking personal responsibility for the US business in March this year.