If you’re a fixed income trader in an investment bank who's looking for a route into the buy-side, Capula Investment Management still looks like a good bet.
Capula has just hired Filippo Fiori, a senior trader at Credit Suisse who focused on hybrids and equity derivatives trading within its pension and insurance solutions business.
Fiori joined earlier in September, and is the second fixed income trader Capula's hired from an investment bank in as many months. Puzhong Yao, a former Goldman Sachs rates trader joined Capula in late August. Jim Zhang, a former interest rates derivatives trader at UBS who was latterly at Citadel, also joined in July.
Fiori worked at Credit Suisse since November 2010, having joined after five years at Goldman Sachs, latterly as head of stock exotics and dispersion from Goldman Sachs. He has both an MBA and a PhD in Mathematics from the University of Chicago Booth School of Business.
Capula is run by managing partner Yan Huo, himself a former MD at J.P. Morgan. Even as hedge funds complain of the chronic talent shortage coming out of investment banks now since regulation shuttered their prop trading desks, Capula has maintained a preference for sell-side recruits.
Goldman Sachs' credit derivatives trader Matt Reid joined Capula in March, while Christian Schels, who was a European government bond trader at Bank of America Merrill Lynch, joined in August.
Capula has a reputation for paying its employees well. Last year, it paid its partners an average of £2.1m – up from £1.9m for the previous 12 months. It also hired David Sabotka, who was previously head of FICC trading at Bank of America Merrill Lynch.
For any FICC traders in investment banks, Capula's gradual expansion could provide a welcome sanctuary from the ongoing cuts. 7,900 front office FICC jobs have disappeared in the past five years, according to research from Coalition, and 1,600 have gone in the past 12 months alone.