While London recruiters shrug off results to last week's UK general election, banking analysts at Deutsche Bank have just issued a comprehensive note on the state of the banking industry worldwide. It provides a good indication of the best areas to be working in as we go into the second half of the year.
If Deutsche is right, the five best businesses areas for front office banking jobs at the mid-point of 2017 are: European equity derivatives, European equity index derivatives, European and Asian equities, and equity capital markets (ECM). As the charts below show, all five businesses are experiencing positive momentum on both a quarter-on-quarter and a year-on-year basis.
Deutsche's figures are derived from its quarterly capital markets pulse. Based on trading volumes, primary revenues and spreads, it aims to provide a snapshot of the health of banks’ major businesses. The latest figures are for the second quarter of 2017.
If equities jobs are going up, fixed income sales and trading jobs are doing the exact opposite. Deutsche's analysts note that both macro trading (rates and FX) and credit trading businesses are under pressure. Similarly, the "pulse" indicates a big decline in M&A revenues especially in the second quarter, with investment grade debt capital markets revenues down substantially year-on-year.
Deutsche Bank's capital markets pulse for Q2 2017: