Key Takeaways
- • Deutsche Bank's distressed debt business, led by CJ Lanktree after his return from Solus Asset Management, earned around $200m in Q3 2025 and drew a special CFO shoutout then, but it is no longer a highlight this year.
- • Fixed income sales and trading revenues excluding financing fell 11% year-on-year in Q3 to €1.43bn, and were up just 2% over the first nine months, which Deutsche attributed to the non-recurrence of strong prior-year distressed credit trading.
- • Emerging markets traders replaced distressed as the favoured business, receiving a shoutout from CFO Raja Akram, while fixed income financing revenues rose 10%.
- • Prime brokerage financing now accounts for 40% of Deutsche's total fixed income revenues, up from 35% a year earlier.
- • Investment bank front-office headcount rose by 203 in Q3 even as 464 operations staff were cut over the past year.
Summary
According to eFinancialCareers, Deutsche Bank's distressed debt traders are not receiving the recognition they got a year ago. In the third quarter of 2025, the distressed business, then headed by CJ Lanktree following his return from Solus Asset Management, generated roughly $200m and earned a special shoutout from the CFO on the results call.
This year the picture has changed. Fixed income sales and trading revenues at the bank, excluding financing revenues, fell 11% year-on-year in the third quarter to €1.43bn and rose only 2% in the first nine months. Deutsche attributed the decline to "the non-recurrence of a very strong credit trading performance in the prior-year quarter, specifically within the distressed business."
The bank's focus has shifted. CFO Raja Akram gave a shoutout to emerging markets traders this year, and fixed income financing performed well, with revenues up 10%. Financing hedge fund and other client trades through the prime brokerage team now accounts for 40% of Deutsche's total fixed income revenues, up from 35% last year.
Compensation remains a factor. Deutsche spent an extra 3% on compensation in its investment bank in Q3, which the publication calculates amounts to an additional 6% per head after back-office cuts earlier in the year. Equity capital markets bankers, whose revenues rose 63% in Q3, may be among the beneficiaries. The bank also continues to hire in front-office roles, adding 203 people in Q3 while cutting 464 operations staff over the past year. Recent additions include emerging markets traders Thomas Fitzpatrick and Christopher Staudt in New York.
This year the picture has changed. Fixed income sales and trading revenues at the bank, excluding financing revenues, fell 11% year-on-year in the third quarter to €1.43bn and rose only 2% in the first nine months. Deutsche attributed the decline to "the non-recurrence of a very strong credit trading performance in the prior-year quarter, specifically within the distressed business."
The bank's focus has shifted. CFO Raja Akram gave a shoutout to emerging markets traders this year, and fixed income financing performed well, with revenues up 10%. Financing hedge fund and other client trades through the prime brokerage team now accounts for 40% of Deutsche's total fixed income revenues, up from 35% last year.
Compensation remains a factor. Deutsche spent an extra 3% on compensation in its investment bank in Q3, which the publication calculates amounts to an additional 6% per head after back-office cuts earlier in the year. Equity capital markets bankers, whose revenues rose 63% in Q3, may be among the beneficiaries. The bank also continues to hire in front-office roles, adding 203 people in Q3 while cutting 464 operations staff over the past year. Recent additions include emerging markets traders Thomas Fitzpatrick and Christopher Staudt in New York.
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