Adam Savarese was looking to make a splash in his new job as Goldman Sachs Group Inc.’s top distressed-debt trader last year, and found it in Peabody Energy Corp., Bloomberg reported today. The coal miner was hurtling toward bankruptcy. Savarese snagged its unsecured bonds for pennies on the dollar and rode them up for one of 2016’s most successful trades. It was risky: Some peers at other banks played it safer with secured bonds, which offered greater protection, though a smaller upside. But Savarese’s blockbuster Peabody move helped engineer a rebound on a desk buffeted by losses and the departure of senior leaders. Now that same rescue play is inflicting pain. Though the trade is still a winner over its lifetime, it reversed course in the first quarter to contribute to a fixed-income trading performance at Goldman Sachs that was so unexpectedly soft that the stock tumbled as much as 5.8 percent on April 18. While currencies and commodities trading left an even bigger dent, the performance by Savarese — and the bank’s entire credit desk — has attracted attention because it contrasts with better results at rivals.
