Morning Coffee: New figures show junior rates traders at Deutsche Bank earn £280k, senior rates traders earn £3m

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Rates trading has been a bad place to be this year. Credit Suisse is closing part of its rates trading business, and Deutsche Bank had a terrible third quarter in fixed income trading, with the rates business at the forefront of the decline. Pay for Deutsche Bank's rates traders will almost certainly fall in 2013. However, it will do so from a high base.

New figures released as part of the court case to reinstate four Deutsche Bank traders wrongly dismissed under the bank's investigation into LIBOR rigging, reveal that Deutsche has been paying its rate traders very well indeed. In 2011, Bloomberg reports that the two managing directors involved in the case received bonuses of €2.7m and €780k. The two more junior bankers received bonuses of €200k and €180k.

On top of this, the court documents reveal that Deutsche's rates MDs currently receive salaries of €264k a year. Juniors receive salaries of €130k a year.

In total, this means that MDs in rates trading at Deutsche have been earning anything from €1.04m to €3.6m (£878k to £3m) annually, while junior rates traders at the bank have been earning around £280k. No one should feel too sorry for DB rates traders if their pay falls a little bit this year.


Bonuses for fixed income traders will decline by 15% this year. (Reuters) 

Mark Lewis, head of energy research at Deutsche Bank, has left after 14 years. (Bloomberg) 

Why it is that BTG Pactual’s so keen to increase the size of its commodities business. (Financial Times) 

“Don’t exaggerate, don’t ruminate, don’t bullshit [in emails],” Dimon, 57, told employees at a town hall meeting at the bank’s office in London’s Canary Wharf last week. “I’m serious,” said Dimon. (Bloomberg) 

Senior bankers have been leaving Macquarie in London. Antony Isaacs, hired in 2009 as head of equity capital markets in Europe, and Allan Bertie, hired in 2011 as a senior managing director in the industrials, communications and sponsors team, have both left the bank in the past few weeks, according to two sources familiar with the situation. (Financial News) 

UBS has hired Oi Yee Choo, a senior female banker from Morgan Stanley, as head of investment banking in Singapore. (WSJ)   

Carlyle's not doing too well. (Dealbook) 

A reminder of how close the world came to melting down over Long Term Capital Management. (CFAInstituteBlogs)

It seems you need to start your career in London. ( 

How stressed are you? (BBC)

Ridiculous job titles conceived by recruitment consultants to make jobs sound more interesting. (DailyMail)