Denmark’s Danske Bank is closing its fixed-income trading desk in Dublin, which will result in six staff being made compulsorily redundant.

This is part of a wider restructuring of its global capital markets activities that will result in its head count in Dublin being reduced by about 15, out of a total of 48 staff operating in this area.

Danske’s fixed-income desk offers products in both primary and secondary markets, including government bonds, mortgage bonds, covered bonds, investment grade corporate and financial bonds, asset swaps, futures, interest rate swaps, forward rate agreements, interest rate options and emerging market products.

In Dublin, the fixed-income desk was heavily involved in selling Irish Government bonds and is thought to have had 10 to 15 big clients. This activity is now being backed into its parent operation in Copenhagen.

Irish Government bonds were much traded at the height of the financial crisis as yields on our sovereign debt soared above 14 per cent.

Downsizing Irish operation

Yields have since narrowed with Irish bonds trading at record lows, which has affected trading volumes.

Danske is still in the throes of downsizing its overall Irish operation after deciding last year to quit retail banking here. It plans to focus its activities in future on servicing the top 50 corporates in Ireland, along with bank and non-bank institutions. It will also act as an adviser on capital raisings by large corporates and the Government.

Its non-core activities relating to consumer and business banking will be wound down over the next year or two.