Fixed income sales hiring holds up well, equities in bad shape
At Morgan Stanley, Stephen Crawford, the chief financial officer, reported a record increase in fixed income revenues during the quarter, thanks to "extraordinary" markets. But equity markets were "struggling". Indices, trading volumes and issuance were all down.
The varying fortunes of equities and fixed income are reflected in hiring trends for sales and trading positions.
Andrew Warburton, managing director of recruitment firm Marshall Warburton, said that while equities had been hit hard, hiring was continuing in the fixed income markets, particularly in structured products.
This is hardly surprising. Sales of credit derivatives rose 37% in the second half of 2002 according to the International Swaps and Derivatives Association.
Clare Harris, a search consultant at Longbridge, said recruitment for sales positions for structured credit products was stronger than ever. 'Banks are trying to grow their teams and small organisations are now coming to the market.'
Current job advertisements for structured credit product salespeople include a 'major international player' offering a 65,000 - 90,000 salary plus 'highly negotiable package' for
a London-based emerging markets specialist.
Candidates should have at least 3 years structured product sales experience and an active from institutional client base, the advert says. Product coverage will include credit-linked notes, default and total return swaps and repackaged notes.
Harris said guaranteed first-year bonuses in structured credit were common. Pay for middle-ranking sales staff in structured credit typically varied from a salary of 70,000 to 90,000, plus a 125%-250% bonus.
Senior salespeople could expect a salary of between 85,000 and 100,000, plus a 150%-400% bonus.
Across fixed income, recruiters said salespeople were more highly sought after than traders. Ben Deare, at recruitment company Cresta, said banks were focusing on salespeople with strong client relationships.
Other job advertisements include a a 'top European financial services group' seeking a fixed income sales specialist who is fluent in German and has at least 5 years' relevant sales experience, together with a sound technical knowledge of the major currency bond markets. The job is based in London and involves managing the firm's German client base.
The same firm is also seeking someone with at least eight years experience to manage its French-speaking client base.
Charles Hamill-Stewart, a fixed income specialist at Alexander Mann, reported strong demand from a number of firms for sales staff experienced in across the board transactions aimed at restructuring investments.
'There's need for individuals who can sell bulk fixed income trades covering everything from foreign exchange products to credit derivatives,' he said.
