The Russians are coming!
An influx of Eastern European talent has the potential to drive pay lower in the City of London.
This may sound like an extract from the manifesto of the British National Party, but it is in fact a conclusion of a new study by the venerable Economist Intelligence Unit and the Institute of Business Value at IBM.
According to The Telegraph, the study predicts that London's hedge funds are all set to attract skilled actuaries and mathematicians from Eastern Europe, and that the resulting increase in skilled staff will drive down bonuses for the existing workforce.
But Joanna Cohen, a consultant at recruitment firm Huxley Associates in London, says there are already plenty of Eastern European quants working in London.
"This year we've placed a couple of people from the Ukraine, Serbia, Croatia and Russia," she says. "Russia in particular has a strong tradition of maths and sciences - Moscow State University is one of the best universities in the world for maths studies."
As proof of the pudding, Cohen points to the long-established presence of senior Russian quants, such as Piotr Karasinski, managing director, global derivatives product development, at HSBC in London.
The good news for bankers fearful for their future earnings is that Cohen says a few more Russian mathematicians are unlikely to make all that much difference: "Will there be a sudden influx of Russian PhDs with hands on C++ experience who'll drive pay down? I have to say I don't think so."
