[LONDON] Morgan Stanley began cutting its fixed-income business in London and may continue reductions on Monday as it pares back global operations, according to people familiar with the matter.
Isabel Mahony, head of financial credit trading; Thomas Moore, head of desk research for investment-grade and high-yield credit; and Adam Clary, head of European credit sales to real-money investors, are among those leaving the firm, said the people, who asked not to be identified because the details are private. Kevin Edwards, who traded financial bonds, is also being let go, according to the people.
Morgan Stanley is planning a reduction of as much as a quarter of its fixed-income staff after years of revenue declines and insufficient returns, people with knowledge of the plans said this week. The US lender reported a 42 per cent plunge in bond-trading revenue in October, in what Chief Executive Officer James Gorman called its worst quarter for fixed income, currencies and commodities since he took over in 2010.
Kay Haigh, Morgan Stanley's global head of emerging markets in London, is also leaving the bank, according to two people familiar with the matter. Finance Magnates reported the move on its website on Thursday.
Tom Walton, a spokesman at Morgan Stanley in London, declined to comment on the job cuts.
Morgan Stanley joins Credit Suisse Group AG, Royal Bank of Scotland Group Plc and Nomura Holdings Inc in scaling back their fixed income businesses this year. Banks are responding to rules requiring them to hold more capital and take less risk by pulling back from some trading operations and reducing their bond holdings.