Why fixed income is now a very good place to work

With both government and corporate bond issuance surging in Ireland this year, fixed income is fast becoming an attractive place to work. What's more, stockbroking firms are bolstering their teams in a bid to capitalise on the rush of new business.

So far this year, the government has raised €23bn through treasury bonds issued by syndication and over €9bn through auction, compared to just €11bn throughout the whole of 2008, according to figures from the National Treasury Management Agency.

What's more, corporate bond issuance has also surged in 2009. For the year to 31 October, €14.3bn of high-yield bonds were sold in Europe, compared to €2.6bn this time last year, according to figures from Standard & Poor's.

"The volumes of both government and corporate bond issuance has created a huge amount of tradable debt," says Liam Clarke, director of institutional bonds at Dolmen Securities in Dublin. "Stockbrokers have therefore been adding to their fixed income desks - we have recruited two this year, and there's potential to add four going into 2010."

Similarly, Barry Nangle, head of bonds at Davy, says: "We have increased the size of our fixed income team this year and continue to look for opportunities to add headcount. Although government bond issuance has been an important source of business over the last 18 months, additional experience of the credit space is also attractive for us."

The majority of hires so far this year have, perhaps not surprisingly, been for sales roles, says James Hayes, manager - banking and financial services at Robert Walters in Ireland.

"They're looking for individuals with a deep knowledge of the fixed income product area and would be able to leverage off an institutional client base," he says.

As well as more established players like Davy and Bloxham adding to their ranks this year, it's also rumoured that other firms, such as Merrion Capital, are aiming to establish a fixed income presence.

NCB Stockbrokers also hired Shane O'Gorman as director and head of fixed income this year, but we understand he left the firm earlier this month by mutual consent. He was previously responsible for trading high yield bonds and leveraged loans at Credit Suisse in London, having spent nine years at Morgan Stanley prior to that. NCB did not return calls for comment.

Nonetheless, international experience remains appealing, says Clarke: "Firms are looking to pick up a very good sales staff, with six plus experience in the London market dealing with fund managers pension funds or hedge funds. These people should be able to bring their relationships with them."