- Trader Matthew Bagley said to have exited RBC this week
- Strategist Gene Fattore said to have left last month
Matthew Bagley, a distressed-debt trader at Royal Bank of Canada in New York, left the bank along with a debt strategist, according to a person with knowledge of the moves.
Bagley departed this week, said the person, who asked not to be identified because the information isn’t public. Eugene “Gene” Fattore Jr., a debt strategist who worked with Bagley, left last month, the person said.
Hannah Sloane, a spokeswoman for RBC, declined to comment.
Bagley joined the Toronto-based bank in August 2010 and was previously at Morgan Stanley and Harris Nesbitt, which has since been renamed BMO Capital Markets, Financial Industry Regulatory Authority records show. Fattore joined RBC in January 2014 and had been at Lazard Capital Markets before that, according to Finra records.
RBC’s credit team has had several senior-level departures this year. Steve Oplinger, head of U.S. high-yield sales and trading, left for Seaport Global Holdings LLC, while Ian Pearce, who ran European credit trading in London, went to Bank of America Corp. as head of sterling credit trading. Ryan Atkinson, co-head of high-yield debt trading in the U.S., also departed.
Distressed-debt investors, who buy beaten-down debt that firms such as mutual-fund managers want to sell, have had a tough time as oil prices plunged to a six-and-half-year low last month. Jefferies Group and Goldman Sachs Group Inc. sustained millions of dollars in losses from their distressed debt trading, people with knowledge of the losses told Bloomberg last week.
Some of the world’s biggest banks have been paring back parts of their trading operations to comply with post-crisis regulations. Deutsche Bank AG co-Chief Executive Officer John Cryan is overhauling the firm’s fixed-income division, appointing an executive committee to oversee the debt-trading business and slash costs.
RBC hired John Bertrand from Morgan Stanley earlier this year to co-head its sales operation for high-yield bonds and loans, a person with knowledge of that move said in March. Bertrand runs the desk alongside Sean Peters.
(An earlier version of this story corrected the name of Fattore’s previous employer.)