GLOBAL – Deutsche Asset Management is understood to have absorbed DB Advisors, Deutsche Bank’s in-house 'structured trading' business following the resignation of the unit’s head Roger Ehrenberg.

Ehrenberg, president and global head of DB Advisors quit last month. The move came amid a wider restructuring of the bank’s top management and billion-euro mandate losses at DeAM.

A bank spokeswoman declined to comment and was not immediately able to provide details about the size of the unit or its staffing numbers. The Economist has reported that the arm invests the bank's own capital in hedge funds.

Deutsche said earlier this year that New York-based DB Advisors has been “negatively impacted” by difficulties in its convertibles business.

In July the bank reported in its second-quarter earnings report that equity sales and trading revenues slumped to 535 million euros from 910 million euros a year ago.

It said: “The decline was mainly attributable to continuing difficulties experienced by the bank’s convertibles business in a market where volatilities remained at historically very low levels against a backdrop of rising interest rates.

“These factors also negatively impacted the performance of DB Advisors, the bank’s in-house structured trading business.”

This week it emerged that DeAM, itself hit by the departure of high-profile executives, has lost a total of three billion pounds (4.3 billion euros) in UK pension fund mandates.

Late last month Deutsche named Kevin Parker as the member of its executive committee with responsibility for asset management, replacing Tom Hughes who is taking a leave of absence.

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