Salary survey: Derivatives staff are in demand

Staff will be in demand in 2002 in credit derivatives trading and structuring, ABS/securitisation and credit sales, according to the specialist financial services headhunter Jared James Associates.

It said there would be a particular focus on staff for Continental Europe, including the emerging markets of eastern Europe.

Derivatives professionals in investment banks have increasingly turned towards the corporate sector in search of bigger margins, which has led to a rise in demand for candidates to service this new client base, said a survey by the headhunter.

Hedge funds in 2002 are likely to maintain their appetite for hiring staff, particularly sales professionals and research analysts, it said.

In equity derivatives, the 'higher value' areas such as hedge fund development, the more complex structured derivatives and the 'corporate' sector are likely to see the most demand. Salaries of 100,000-130,000 are being paid to staff in product development with five or more years experience.

Traders of interest rate derivatives with such experience can earn salaries of 100,000-125,000 with a bonus to 500%, according to the survey. In debt capital markets origination, the salary for the same experience can reach 150,000, also with a bonus to 500%.

Jared James said it had produced the figures as a guide to the current market, based on conversations with employers and with individuals who had been notified of their bonuses this year.

High-yield had a disappointing year in 2001, said Jared James, as the big staff build-up of the previous two years was not justified by revenue generated. But traders tended to come out better than their sales counterparts, and researchers with five or more years of experience commanded salaries of 100,000-125,000, with bonuses of 200%.