Millennium Management has hired a senior credit trader from Tower Research Capital, according to Business Insider, marking another example of the continued competition for talent between hedge funds and proprietary trading firms.

The move comes as Tower seeks to expand its presence across fixed-income markets and diversify beyond its traditional strengths in quantitative and high-frequency equities trading. The firm has recently increased its focus on credit and fixed-income products, including a significant push into the rapidly growing fixed-income ETF market.

The departure highlights the challenges firms face in building and retaining specialist fixed-income teams amid strong demand for experienced traders. Multi-manager hedge fund platforms such as Millennium have continued to attract talent by offering substantial capital allocations, extensive infrastructure and access to diversified investment platforms.

The hire also underscores the growing importance of credit trading across the alternative investment industry as managers seek new sources of alpha in an environment shaped by higher interest rates, increased market volatility and expanding electronic trading activity.

For Tower, the loss of a senior trader comes as the firm continues to invest in its fixed-income capabilities, a strategic area that has become increasingly competitive as proprietary trading firms and hedge funds vie for market share across credit and ETF markets.