Content area
Full Text
Deutsche Bank has suspended two commercial MBS traders amid speculation that the institution suffered more than $30 million of bond losses.
A Deutsche spokesman confirmed that the two traders - Jake Markman and Paul Mashikian - were placed on administrative leave pending an investigation about the pricing of the bank's CMBS portfolio.
While the spokesman declined to elaborate on the investigation, market players said that it had to do with the mispricing and/or hedging of the bank's CMBS portfolio. Investors said that Markman focused on trading higher-rated CMBS, while Mashikian traded lower-rated, less-liquid bonds and was responsible for hedging the firm's CMBS portfolio. Markman and Mashikian...