Deutsche Bank has poached a senior trader from HSBC to bolster its distressed-credit business, a powerhouse group that's been hit with defections in 2020

  • Deutsche Bank has poached a senior trader from HSBC to bolster its distressed-credit group, people familiar with the matter told Business Insider. 
  • Jason Harris, previously the head trader in HSBC's distressed group, will join Deutsche Bank in October.
  • The hiring helps replenish the ranks in Deutsche's credit-trading group, which has seen a string of departures this year. 
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Deutsche Bank has poached a senior trader from HSBC, bolstering a distressed-credit group that's seen a slew of defections this year. 

Jason Harris, previously the head trader in HSBC's distressed group, is joining Deutsche Bank's distressed unit as a senior trader, according to people familiar with the matter. He'll start in October and report to Shawn Faurot, the head of credit trading in North America.

Spokesmen for HSBC and Deutsche Bank declined to comment. 

Distressed trading has long been a powerhouse for Deutsche, making the German lender a perennial top credit contender on Wall Street alongside larger American peers like JPMorgan Chase and Bank of America. 

But the credit-trading group in 2020 has suffered a string of departures amid cost cuts and a squeeze on compensation as the firm executes a massive restructuring effort launched a year ago. The exits have included at last four staffers in the distressed group, including senior analysts as well as longtime group head Matt Weinstein, who was poached by Morgan Stanley in spring. 

The firm also lost its heads of high-yield trading and investment-grade trading in July. 

The bank's fixed-income trading division in July reported €2.1 billion in revenues for the second quarter, a 39% increase from last year but significantly less than the mammoth gains reported by American competitors. 

Harris spent 2-1/2 years at HSBC, making markets and running a $200 million proprietary investment portfolio, according to his LinkedIn profile, focusing on products including "bank loans, bonds, trade claims, accounts receivables puts, busted converts and reorg equities."

Prior to HSBC, he spent time at the hedge funds Man Group and Mason Capital Management. He worked in Citi's credit-trading division from 2006 to 2011. 

Harris isn't the only senior hire by Deutsche Bank to replenish its ranks. In recent months it has also added to its investment-grade bond-trading team, hiring Mark DeSplinter from Citi in June to run US index and single-name credit-default swap trading. Igor Pavlov was hired in May from the hedge fund Centiva Capital to trade fixed-income ETFs.  

Read more:

  • Headhunters lay out what bonus season could look like this year for Wall Street traders
  • A top credit-trading exec is out at Wells Fargo. The exit comes as the bank is pursuing billions in cost cuts.

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