Citigroup Inc.’s top investment-grade bond trader and three other traders left the bank amid a slowdown in fixed income that’s hurt revenue at Wall Street’s biggest firms, people familiar with the matter said.
David Cohen, 54, head of investment-grade debt trading for New York-based Citigroup, left last month, according to two people with knowledge of the matter who asked for anonymity because the departures have been kept private. Eugene Tutunikov, who ran algorithmic credit trading, also left along with traders Craig Napoliello and Peter May, the people said.
Revenue at Citigroup’s bond-trading division dropped in four of the past five quarters compared with a year earlier as the Federal Reserve slowed its debt-buying program. The fourth quarter of 2013 was the slowest in two years. JPMorgan Chase & Co., the biggest U.S. bank, said last week that the industry’s trading slump may last through the second quarter.
Scott Helfman, a Citigroup spokesman, declined to comment on the departures.
Cohen started at Citigroup in 2010 after working for Morgan Stanley from 1984 to 2005, regulatory records show. He also worked for units of Credit Agricole SA and Mitsubishi UFJ Financial Group Inc. He declined to comment when reached by telephone.
Tutunikov, who helped the bank develop a system for automatic market-making in credit-default swaps, worked at the bank since 2006, the records show. He said in an e-mail that he’s on garden leave and exploring his options. Benjamin Crovella, a trader on Tutunikov’s team, left last year to attend business school.
Napoliello, who traded investment-grade credits, joined in 2011 from Deutsche Bank AG, the records show. May, a credit derivatives trader, started at Citigroup in 2006. They didn’t return phone messages seeking comment, and e-mails sent to their work addresses were returned with an automatic reply saying the user was unknown.
Citigroup’s credit trading team is run by Carey Lathrop, who reports to Francisco “Paco” Ybarra. James “Jamie” Forese, Citigroup’s co-president, runs the institutional businesses including the investment bank.