Now Morgan Stanley's head of illiquids is leaving leaky business

Morgan Stanley's fixed income trading team has suffered another senior exit. Christophe Gau, the head of illiquids, is understood to have resigned. His destination is unknown.

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Gau was trading illiquid rates and credit. Morgan Stanley declined to comment on his disappearance, which was confirmed by several sources in the market. 

Gau is the latest in a series of recent post-bonus exits from Morgan Stanley's broader credit trading team. First there was Saba Danish, head of European credit sales. Then there was Herbert Filho, head of European credit trading and research. Then there was Jeff Qiu, the US head of macro trading and research.  Filho and Qiu are going to hedge funds. 

It's not unusual for people to resign after bonuses. However, the exits are the latest in a series of departures from Morgan Stanley's credit trading team, led by London-based 43-year-old Rehan Latif. Insiders have mixed opinions on Latif: while some claim he's a great guy, others suggest he has favourites and can make arbitrary decisions. 

In addition to the exits we reported last week, sources say that other disappearances from the team last year included: Alwahaz Bora in high yield analytics, who went to BNP Paribas and Robel Embaie, a leveraged loan trader who went to Morgan Stanley.

Gau isn't understood to have reported to Latif but to Wolfgang Pammer, global head of structured rates trading. 

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