London's inflation traders are popular on the recruiting scene
If you work on an inflation trading desk and you get it right, you may have a very good year. In 2021, Nikhil Choraria, who was then the top inflation trader at Goldman Sachs, reportedly generated $450m in revenues. Choraria has since gone to Citadel Securities. It turns out that he is not the only inflation trader on the move this year.
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Inflation traders trade inflation-linked government bonds and their derivatives. The relatively small UK market has historically been known as the "widow maker" as it's easy to get trapped in losing positions. But London-based cover Europe too and hiring appears to be happening across the market.
The past few months have brought various moves. As we reported in February, Douglas Cypel, Citi's star inflation trader in Paris is joining Brevan Howard. Oscar Eriksson, another trader on the Citi desk, has also left for an unnamed hedge fund. Citi declined to comment; Eriksson didn't respond.
Both traders themselves and headhunters confirm that inflation traders are suddenly popular in the London market. "GBP inflation traders are on the move again," says one trader. "Sterling rates is becoming a more precious market to be in." A headhunter says the market is subject to "lots of movement" and to "musical chairs."
Some of the chairs left empty are at NatWest, where people seem to have left - voluntarily or otherwise - before bonuses were paid. The departures include Anthony Wells, the head of linear rates trading at the bank and who left in February according to the FCA Register. They also include Alessandro Iannelli who left around the same time and who has just joined Santander. Justin Van Heerden, NatWest's head of XVA trading, left in February too. The bank declined to comment.
Various other hires are thought to be in process. "It was easy to find a new role," says one trader. "We are back in fashion again."
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