'Most of my cohort is now missing in action'.
Banks are taking a hatchet to their bond-trading businesses and the biggest casualties are proving to be the people with the most experience.
Bloomberg News reports that about 70% of credit traders cut in London last year at the 12 largest investment banks had worked in the financial industry for more than 10 years, according to data compiled by headhunters Michelangelo Search, which specializes in sales, trading and research roles. That’s increasingly leaving trading desks manned by more junior colleagues.
Experienced, better-compensated staff are falling victim to banks’ efforts to reduce costs as they try to generate profit within constraints imposed by regulators and central banks since the global financial crisis. There’s more to come as banks from Bank of America to Goldman Sachs consider cuts as soon as this quarter.
'I’ve been in the fixed income business for 35 years but most of my cohort is now missing in action', said Tim Skeet, who has worked in bond-market roles since 1981, and is currently looking for a new position in the industry. 'There’s a ‘juniorization’ of the workplace underway in London as banks focus more on costs than revenues'.
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