The battle for top-tier yen rates traders is intensifying across the hedge fund space, as firms rush to capitalise on volatile market conditions in Japan — and are willing to pay handsomely for it, according to a report by Bloomberg.
A string of high-profile moves has underscored the talent arms race, with packages reaching as high as $30m as hedge funds seek to rebuild or expand their Japan-focused rates desks in the wake of sharp bond market dislocations. The moves come after a dramatic steepening of the Japanese yield curve, driven by US tariff policy shifts and speculation over increased government spending in Tokyo.
Among the latest departures, BlueCrest Capital Management’s Makoto Harimoto is set to join Modular Asset Management as a portfolio manager to bolster its Japan platform. Meanwhile, Ron Choy exited BlueCrest for Balyasny Asset Management after being offered a package reportedly worth $30m. In parallel, Capula Investment Management and Dymon Asia Capital have recruited seasoned derivatives traders from Deutsche Bank and Barclays, respectively.
The volatility spike in April – which saw Japan’s 30-year government bond yields climb to their highest in over two decades – rattled many traders who had grown accustomed to the Bank of Japan’s long-standing low-rate regime. Losses prompted an exodus from some desks and an uptick in poaching from rival firms.
Banks, too, are racing to shore up talent. Barclays has brought in Marcus Yuki Sato and veteran trader Yoichi Takemura, while Bank of America hired Shuya Sakamoto, formerly head of yen swap trading at Barclays.
The hiring surge extends even to those who had been caught up in previous market turmoil. Yosuke Motegi recently joined Polymer Capital Management, reuniting with former BlueCrest colleague Chiga Murayama after both departed during the August rout.
