Bankers with low bonuses face the sack

Bankers who are still reeling from paltry bonuses now face the possibility of being singled out for redundancy, according to Gavin Bonnet, managing director of the search firm AMGM.

He said many banks gave low payouts last year in the hope that the recipients would pack their bags and look for jobs elsewhere. Few have done so, as in the current job market there are not many openings.

'Banks thought poor bonuses would automatically release staff. But people have stayed put. We may soon see the axe coming out,' said Bonnet.

'However we are still seeing opportunistic hiring of high quality individuals for upgrading purposes,' he said.

AMGM's latest quarterly job market overview said hiring was limited in most sectors, but in some there were signs of an upturn.

One is commodities, with firms planning to strengthen their oil marketing teams, according to AMGM consultant Colleen Quilty. 'Firms want to corner the market and capture new business.'

AMGM said there was also potential for growth in the convertible bonds market, where the outlook for primary business 'remains encouraging'.

There was a 'bottleneck' in recruitment in portfolio trading, the firm adedd. Most portfolio trading teams would probably recruit quickly if financial markets picked up.

Other pockets where hiring was relatively strong included: quantitative positions in risk management; in-house legal positions, particularly those related to derivatives; collaterised debt obligations; and sales positions in fixed income derivatives.

AMGM also said that despite the prospect of lower pay, some credit researchers were moving to the buyside, which had greater need of their skills than the sellside.