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Deutsche bankers to receive particularly large bonuses?
16 June 2009By Sarah Butcher
As everyone who has not spent the past six months in a cocoon or broadband notspot will know, fixed income trading has done particularly well in the first half of 2009.
JPMorgan thinks 2009 will be a record year for fixed income revenues, with a 34% increase predicted over 2008.
Equally, Credit Suisse analysts said in a note released this week that thanks to a combination of strong inventory gains, reversal of last year’s losses, healthy client volumes and wide bid/ask spreads conditions for fixed income currencies and commodities trading businesses are, ‘as close to perfect as could reasonably be expected.’
Who’s most likely to benefit most from this fortunate combination of events? As far as European banks are concerned, it looks like being Deutsche bankers. As the chart below from Credit Suisse shows, only Goldman derived a higher proportion of its revenues from fixed income trading in the first quarter.
Source: Credit Suisse (click to expand)
Given their emphasis on fixed income trading, it's probably no coincidence that Goldman and Deutsche Bank were the best paying institutions in the first quarter. This looks likely to remain the case for the rest of the year.
COMMENTS
Cream of Credit, Credit, Wed 17 Jun 09
Curious, a £43-45k bonus as a 1st yr analyst seems reasonable right now. Was £55-60k in 07, given current conditions that seems about right.
Add your comment »jjj, Trading, Wed 17 Jun 09
i think "Curious" is talking about total comp, not bonus, with "43-45k".
and to give a meaningful answer this is probably par for the course... salary 35k + 10k bonus... well done for a Y1 analyst.
market has changed. yes there may well have been a select few juniors earning high 5 figures, maybe low 6 in years 1-2, but not any more.
all these silly boys (no offence, girls, but this is clearly boys) claiming to earn x-zillion here and there: you're hilarious. you're the same people that i laugh at swooning into "top london clubs" (you know where i mean) to buy overpriced champagne with your own money on a thursday & friday night. i guarantee that you're 21-25, on an analyst programme at IB, and doing relatively well compared to most of your peers in other vocations. but you need to learn some humility. right now you know very little, and if you didn't turn up to work one day, it wouldn't make the slightest bit of difference. THAT is why you don't earn the big bucks (yet. as maybe one day you will, but in the meantime, just keep getting the coffee order right, and please try to keep the typos down in the PowerPoints that you do for the rest of the desk)
Young, Rich & Pretty, FX & Money Markets, Thu 18 Jun 09
jjj, you're actually quite right, good analysis, however there's no need to be humble, I'm in the top 0.1% of the top 1% of the top 0.5% of 25yos my age on the entire planet regarding earnings power, can comfortably afford to spend £1k a weekend at the best clubs (whilst having a mortgage etc), so why not enjoy it while I can?
Add your comment »jjj, Trading, Thu 18 Jun 09
Y, P & C,
fair enough, my belittling comments were uncalled for, and ont something i normally stoop to.
you should enjoy the fruits of your labour, but don't be over-confident... the market IS changing, and unfortunately the anecdotal compensation packages of CDO salesmen of 2005 aren't going to come back... probably for ever.
Believe me, i think this is a shame just as much as you do!