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Nomura said to cut senior staff in London fixed-income unit
[LONDON] Nomura Holdings Inc's restructuring of its overseas activities is spreading to its European fixed-income operations, according to people with knowledge of the matter.
Japan's largest brokerage is cutting senior management jobs in its high yield, distressed debt and asset-backed securities divisions in London, according to three people familiar with the cuts who asked not to be identified because they're not authorised to speak about it.
Nomura plans to close certain businesses in Europe and "rationalise" parts of its operations in the Americas, the firm said on Tuesday.
Peter Chung, head of high yield, loan and distressed debt trading in London, distressed debt specialist Matteo Conte and hedge-fund credit sales executive director Josh Gibbs left the bank this week, two of the people said.
Senior managers of Nomura's asset-backed securities team, including the head of strategy David Covey, senior trader Edward Rose and head of European sales John Lawler, also left the bank, people said.
A spokeswoman for the bank in London declined to comment on the plans.
Global investment banks including Barclays Plc, Citigroup Inc and Credit Suisse Group AG are cutting thousands of jobs as higher capital costs and low interest rates undermine trading profitability.
Nomura, which bought Lehman Brothers Holdings Inc's European and Asian operations in 2008, hasn't been profitable overseas since 2010.
The bank plans to shut down its equity research, sales and underwriting for European stocks, a person with knowledge of the matter said on Tuesday. The firm said it will provide details of the changes when it reports earnings on April 27.
Nomura cut high-yield bond traders and analysts in London in August last year, three people familiar with the matter said at the time.