Congratulations are in order for the high yield community. After a strong year, they're back on top.
This week has seen the launch of Europe's largest ever high yield bond - a gargantuan €4.5bn (3bn) used by private equity firms to finance the purchase of Philips' €8bn semiconductors business. Smaller issues by the likes of Rhodia have helped drive the market close to a five year high.
All of which is good news for jobs. Lee Thacker, a partner at Heidrick & Struggles predicts a new wave of high yield recruitment in 2007 as confidence in the market returns.
Compensation for London-based high yield sales and trading pros has already risen 20% to 30% over last year as London-based talent develops a track record, says Thacker. The based paid in the UK market have US experience though - a VP at a top tier bank can expect total compensation in the range of 400,000 to 430,000.
Next year could see high yield professionals being bid up. Craig Stocksleger, a partner at Comprehensive Recruiting, says that high yield analysts are being enticed away from investment banks by credit focused-hedge funds with a new-found interest in the area.