Banks hire in compliance, but not in fixed income - overview
There are signs of healthier hiring activity in the compliance and legal sectors in both asset management and investment banking, according to a London market overview by headhunters Alexander Mann Global Markets (AMGM).
Hiring freezes are gradually being lifted and the bulge bracket firms are plugging gaps in their compliance teams, the overview said.
In particular, senior roles are opening up as key staff have jumped ship for one reason or another. Increasing numbers of staff are exploring opportunities outside their firm, especially those who are working in compliance teams at US houses, AMGM said.
Firms are still placing a large number of assignments in compliance contingently in the market, which has resulted in a CV race for many jobs. But activity at more senior levels in retained search now appears to be picking up, the report said.
The FX and equity derivatives market is also active, with Europe being the main focus. Equity derivatives still seem very buoyant on the trading and sales side, whilst for FX and short-term interest rates there are pockets of hiring in Continental Europe.
The picture is gloomier in fixed income. A number of houses are currently restructuring their fixed income departments to make them leaner, and many US houses maintain headcount or hiring freezes. Headhunters are finding this sector murderously competitive, says the overview.
The demand for market risk managers and quants is mainly still fuelled by replacement hires, and this remains true for credit risk as well. But the capital markets and treasury businesses are looking a little more favourably on hiring now, whereas the demand was previously all on the corporate side.
Equities continue to operate in an uncertain environment focusing on cost-effectiveness, but there seem to be "encouraging signals" coming from "hiring managers within the investment banks, who have been through a difficult quarter but realise there is a need to resource their desks for the rest of the year."
