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Wall Street reaped billions from ruble trading in the Ukraine war's first year, Bloomberg reports. Banks would buy dollars cheaply and sell them at a markup to Western firms fleeing Russia. Western banks turned to lesser-known peers in countries on good terms with Russia, such as Kazakhstan and Armenia. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Lenders involved in the ruble trade and those that steered clear of it declined to comment to Bloomberg.
Persons: Banks, Vali, Goldman Sachs, JPMorgan Chase, Vladimir Putin, June's Wagner Organizations: Ukraine war's, Bloomberg, Service, Citigroup, JPMorgan, Wall Street Locations: Ukraine, Russia, Kazakhstan, Armenia, Wall, Silicon
Inflation trading has gone from a backwater to a $4 billion business as consumer prices careen. It's led to a rush of hiring by banks and hedge funds eager to tap top talent. Insider breaks down the biggest departures, promotions, and hires in inflation trading. Inflation trading isn't new, but up until the last two years, it was a bit of a backwater. It's Winkworth's second move since the renaissance in inflation trading — he joined Deutsche from Morgan Stanley in 2021.
Persons: It's, Jimmy Carter, Joaquin de Soto, Goldman Sachs, Jordan Lange, Carrington Fox, Igor Cashyn, Guy Winkworth, Sukhjeet Atwal, Morgan Stanley, we'll Organizations: Citadel, Barclays, May, JPMorgan, Deutsche Bank, Deutsche
Goldman Sachs just lost one of its star traders to billionaire Ken Griffin. The move comes amid a fierce talent war for inflation traders. Goldman Sachs just lost one of its stars to billionaire Ken Griffin as demand for inflation traders burns up across Wall Street. Joaquin de Soto, a top inflation trader for Goldman Sachs in London, is heading to Citadel, the $60 billion hedge fund founded by Griffin, according to people familiar with the matter. Trader pay is also skyrocketing due to swelling assets at multistrategy funds like Citadel and Millennium, leading to a war for talent.
Persons: Goldman Sachs, Ken Griffin, Banks, Joaquin de Soto, Griffin, Brevan Howard, De Soto, efinancialcareers, Goldman, they've Organizations: Citadel, Wall, Goldman, Bloomberg, Vali Analytics, BLS, Trader, Millennium Locations: London
REUTERS/Maja Smiejkowska/File PhotoCommodity trade finance covers many types of loans, typically from banks, that facilitate global movement of goods from wheat to gasoline. Most trade finance loans are short-term, less than a year. Traders’ credit lines became strained last year when natural gas prices sky-rocketed in the fourth quarter. ‘DESIRE TO DIVERSIFY’Lending for commodity trade finance has become more diverse, with non-bank financial institutions (NBFI) stepping in. The underlying issue was the retreat of major banks from commodity financing after some 2020 defaults in the sector while Russian banks Sberbank and Gazprombank that were set to expand have now been shut out of Europe.
Commodity trade finance covers many types of loans, typically from banks, that facilitate global movement of goods from wheat to gasoline. Most trade finance loans are short-term, less than a year. The involvement of hedge funds in commodity trade finance has created a lifeline for smaller firms, deemed to be higher risk for banks due to strict capital requirements and clean energy goals. 'DESIRE TO DIVERSIFY'Lending for commodity trade finance has become more diverse, with non-bank financial institutions (NBFI) stepping in. The Swiss firm specialises in financing small to mid-sized commodity merchants and has achieved returns between 6% to 10% over the last 10 years.
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