Ever-increasing appetite for derivatives pros

Rumour has it a substantial pipeline is developing for 2007 derivatives hires.

"We're being issued with big hiring plans for Q1 next year," says one derivatives specialist City headhunter. "From our point of view there will be a definite 10 per cent to 15 per cent increase in staff at VP level and above, across all product areas."

HSBC, Credit Suisse, and Royal Bank of Scotland are understood to be in the process of building their derivatives businesses, while more established players such as Morgan Stanley, Barclays Capital and Deutsche Bank are also said to be hiring - a fact unconfirmed by the banks concerned.

Less exuberantly, Russell Clarke, a director at search firm Mantis Partners, tells eFinancialCareers.com that hiring volumes remain high, but recruitment in 2007 is more likely to be more focused on niche areas: "Indications are that hiring next year will be focused on areas such as high margin structured product sales to places like Germany, Norway and Sweden."

A rival headhunter says credit derivatives professionals are generally bullish about bonus prospects for 2006. "People aren't hanging out the bunting just yet, but the majority of credit and rates desks say they've already exceeded their budgets for this year."