In the five years that John Silvetz made about $700 million
for Deutsche Bank AG (DBK) by trading corporate bonds and credit derivatives,
the amount of his annual bonus paid in cash dropped to 20 percent from almost
70 percent, teh good people at Bloomberg report.
The rest, earned by betting on companies from American
International Group Inc. to MBIA Inc., was locked up in deferred stock and
euros, according to people familiar with the matter, who declined to be
identified because they’re not authorized to discuss compensation. In
September, Silvetz, 37, jumped to hedge fund BlueCrest Capital Management LLP.
He was the last of a trio of New York debt traders who departed after making $1
billion for the German lender in two years, the people said.
Wall Street’s biggest banks have lost almost two dozen of
their most-profitable credit traders in the past 13 months as regulators limit
the kind of risk-taking that amplified the housing crisis four years ago.
As
banks slash or defer pay and reduce the amount they’re willing to wager, the
traders are seeing better opportunities at hedge funds and investment firms
that seek to profit in markets lenders are retreating from….
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