Ilker Ertas, head of a desk that trades mortgage bonds at Citigroup Inc., resigned this week, according to a person briefed on his departure.
Ertas is joining Annaly Capital Management Inc., according to other people, who asked not to be identified discussing personnel matters. New York-based Annaly, which ended 2014 with $88.4 billion of assets, is the largest real estate investment trust that buys mortgage debt.
His exit follows the February departure of Stefan D’Annibale, head of Treasury and agency trading, who joined a hedge fund, and the March resignation of Joseph Leary, a trader of 30-year Treasury bonds. The bank named Steven Kim to replace D’Annibale last month.
While both D’Annibale and Leary worked in the rates business, Ertas sat within the securitized-products area that’s overseen by Jeffrey Perlowitz and Mark Tsesarsky. Ertas declined to comment, as did spokesmen for Annaly and New York-based Citigroup.
Ertas’s group traded instruments such as collateralized mortgage obligations, which slice up U.S.-backed mortgage bonds into securities with differing risks tied to interest rates and repayment speeds. He’s traded products known as interest-only tranches, or IOs, which concentrate prepayment risk.
Ertas joined Citigroup in 2011 from Barclays Plc after the London-based bank added traders from his previous employer, Lehman Brothers Holdings Inc. following its collapse, according to industry records. He joined Lehman in 2003 from Citigroup.