Pankaj Jha, an MBS analyst at Deutsche Bank Securities, left the firm after news surfaced that one of his reports contained “significant similarities” to research from Royal Bank of Scotland, according to a report by Bloomberg.
Bloomberg reported that Deutsche Bank issued a revised version of its regular The Outlook: In MBS and Securitized Products report earlier this week, removing Jha’s article called Aspects of Convexity Hedging in the Current Environment, which was included in the original issue five days earlier.
“That article has been removed after finding significant similarities to an article entitled Convexity Hedging in a Low Rate Environment published by The Royal Bank of Scotland on [June 30] and authored by Greg Reiter, Jeana Curro and Sarah Hu,” Deutsche Bank said in a note appended to the first page of the report, according to Bloomberg. “We apologize for the confusion and inconvenience.”
Before joining Deutsche in November, Jha was a senior MBS trader/analyst at the Federal Reserve Bank of New York.
Before his four-month stint at the Fed, he worked as a managing director in mortgage research at RBS from 2006 to 2008. Before that, he held various positions at Citigroup as a director, as well as JPMorgan Chase and Lehman Brothers as a vice president in both firms.
Bloomberg’s report highlighted some of the stark similarities between Jha’s work and that of researchers at RBS.
“The Fed MBS purchase program not only helped in lowering mortgage rates, but kept them range-bound, which in turn stabilized mortgage prices, reducing the need to hedge out volatility and convexity,” Jha wrote in his last report.
Likewise, the June 30 report published by RBS stated that, “The Fed MBS buying program not only lowered mortgage rates in 2009 but kept them range-bound, stabilizing mortgage prices and the need to hedge out volatility and convexity,” according to Bloomberg.
Bloomberg additionally noted that his report included five charts that were the same or almost identical to ones in the RBS article.