Fluctuating fortunes in fixed income

Things are getting complicated in fixed-income recruitment: the globals are quiet; the Big Four are opportunistic; and the boutiques are growing. There are differences between job functions, too. Sales and trading roles are holding their own, while origination (debt capital markets/securitisation) is taking a tumble.

There hasnít been much net headcount change in the trading teams at most banks in Australia, says Patrick Everest, a partner at Jon Michel Executive Search. ìThey are still going strong and making good money.î

Sales seems relatively unscathed too, apart from structured credit jobs. ìA couple of banks are growing their global sales teams and taking the view this is a good time to pick up talent at a less expensive price than in recent years,î says Everest.

However, origination isnít so good, as Everest explains: ìThere have been very few roles in this space in recent months. Deal flow is the lowest in recent years and ABS/securitisation, in particular, is suffering.î

Citigroup and UBS are winding back their Australian securitisation teams, according to another headhunter who did not want to be named.

Melissa Tal, a recruiter at Michael Page International, is also cautious on fixed income jobs. Itís difficult to raise debt at the moment. Securitisation and debt capital markets have no real growth and this is slowing recruitment in these areas.î

Tal tells eFinancialCareers that most international firms are not recruiting. The large local banks are making key strategic hires if top-level candidates come onto the market, but they arenít in expansion mode either. ìThe opportunities are now mainly with the smaller local boutique firms. Although there are fewer deals in the market, there is also less competition, allowing these firms to grow,î she adds.

Candidates are being attracting by the advantages of moving to a boutique. ìThere are a lot fewer variables affecting the boutiques. They donít take hiring and firing orders from overseas and decision making is done locally. This can give greater longevity to jobs, better life balance and a good career path to candidates,î says Tal.

Caliburn is one of the niche advisory firms currently hiring in fixed income, according to the recruiter who asked to remain anonymous.