Deutsche Bank traders reaped $35 million on Turkey turmoil 

Deutsche Bank AG fixed-income traders generated a $35 million profit in two weeks as economic turmoil in Turkey triggered a slump in assets across emerging markets, according to people with knowledge of the matter.

The traders, who work on a desk focused on Central and Eastern Europe, the Middle East and Africa, made more than $10 million on Aug. 10 when the Turkish lira plunged the most in almost two decades, the people said, asking not to be identified discussing private information. The team was positioned to profit from any slump in assets prices across the region, they said.

The desk, run by Aditya Singhal, has made about $135 million this year, the people said. The group trades across credit tied to borrowers from the so-called CEEMEA region, foreign exchange and rates products. Singhal has been leading that group since the end of 2016.

The credit team has made $45 million this year under head trader Niru Raveendran, with a quarter of those gains coming just in the past week across bond and derivative trading, the people said. Raveendran had previously worked with JPMorgan Chase & Co. and BNP Paribas SA.

The world’s biggest financial firms are feeling the impact of tumult in Turkey, where U.S. sanctions and tariffs sparked by the imprisonment of an American pastor have collided with an already overheating economy. Deutsche Bank’s trading gains may provide some respite for Chief Executive Officer Christian Sewing, who is overhauling the fixed-income business after years of underperformance and fines for misdeeds.

Charlie Olivier, a spokesman for Deutsche Bank in London, declined to comment.

Source: Bloomberg – Deutsche Bank Traders Reaped $35 Million on Turkey Turmoil

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