CDO and ABS staff required across Europe

Demand for staff with CDO (collateralized debt obligations) and ABS (asset-backed securities) expertise is buoyant and likely to increase substantially next year, according to a report by the headhunter Mantaray.

It forecasts that year-end reviews by banks will focus on enhancing ABS sales and trading teams. Deborah Dor, Mantaray's managing director, said traders were the most sought after.

Areas of hiring include: CMBS (commercial mortgage-backed securities) teams, German FIG (financial institutions group) securitisation teams and senior management roles in ancillary institutions such as ratings agencies.

Dor said deregulation moves in Greece, Germany and Central Europe had led to rising demand for local experts. 'Employers want native professionals with relevant origination and structuring experience in these regions - especially for German FIG coverage where the candidate pool is so small.'

Growth in the German FIG market has been stimulated by the proposed removal of trade tax in Germany, said Dor. This would enable financial institutions to execute deals in cash, instead of opting for synthetic securitisations.

She said German banks such as HVB and WestLB were among those expected to expand their European franchises.

Growing demand for staff is expected to have a positive influence on pay. Dor said bonuses for ABS, CMBS, German FIG and CDO staff could rise by as much as 25% in 2003 compared to 2002. Rising issuance levels are driving the trend.

Mantaray said ABS and MBS salespeople, traders and researchers with three years' relevant experience currently receive typical total packages of 150,000 to 200,000 in London, including a bonus of between 60% and 300%.

After six years relevant experience, traders are generally better off. While salespeople can expect a total package of 300,000 to 350,000, higher bonuses in trading can push total compensation as high as 600,000, Mantaray said.