Front office credit professionals anticipate generous bonuses this year. But recruiters caution against over-optimism.
Research by credit-focused search firm Credent Partners suggests over 80% of credit professionals working in the City are rubbing their hands at the prospect of higher bonuses in several months time. The survey covered both structured and vanilla product professionals, a full eight per cent of whom are expecting payouts double those of last year.
Recruiters warn the credit optimists against straying too far from the less exciting reality reality. "Yes, credit professionals are in line for an increase. But they may not be as much as people are expecting." says Clare Harris, a director at search firm Akamai Financial Markets.
"Due to issues like margin compression, we are expecting a rise in the region of 20-25%," she adds.
Credent's survey, which covered 75 professionals working in the credit market, found structurers and strategists to be the most bullish. Michael Stubbs-Egginton, Credent chief executive, says both are hoping to capitalise on strong market demand: "Overall it's been a good year for everyone, but particularly for structurers and strategists."
He adds: "Strategists in particular are becoming increasingly important people on desks and are well placed to benefit from higher profitability."