Citigroup Is Exiting Distressed Debt Trading 

  • Decision removes a key player in the market’s dwindling field
  • Bank is also shuttering its storied municipal-bond business
WATCH: Citigroup will exit the distressed-debt trading business according to sources briefed on the matter.Source: Bloomberg
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Citigroup Inc. has decided to exit the distressed-debt trading business, the latest retrenchment in Chief Executive Officer Jane Fraser’s effort to reshape the firm in pursuit of higher returns.

The move, described by people briefed on the matter, will remove one of the key players in distressed-debt markets, and follows a recent decision by the New York-based bank to get out of municipal bond trading and underwriting.