60 Posts

Jersey city and New York City with Manhattan Skyline over Hudson River

Goldman have informed the regulator of a further 44 job cuts in NYC. This is in addition to the 98 announced in June, and brings the total number of job cuts to over 400 for 2016.

The cuts will be made by the end of the year.

Goldman sighted weaker dealmaking, and trading slump for the cuts.

Earlier in the year they announced that the Fixed Income department would be cut by 10%, double its usual 5% trimming.

Paul Mandel Recruitment are excited to announce that they have partnered with Pierre Schroeder, CEO and Chairman of Square Investment Management, to act as an advisor to our team.

Pierre’s background includes 20 years at Society Generale as Treasurer, and head of Debt Finance New York. Pierre currently serves as Chairman and CEO of Square Investment Management.

Pierre will be instrumental in helping global Hedge Funds examine their talent acquisition models, and work closely with the Paul Mandel Recruitment team in order to identify opportunities for our clients to bring in the very best traders, analysts, PM’s, and Researchers.

(Bloomberg) Job vacancies at London’s financial services companies jumped 52 percent last month with banks seeking more fixed-income traders as volatility in markets increased, according to a recruitment firm.
The number of new job openings in the Canary Wharf and City financial districts rose to 4,100 in May from 2,690 a year earlier, Astbury Marsden said in a statement Monday. Financial positions available in the capital have now increased for five consecutive months.

“Revenues are growing in certain areas of fixed-income, commodities and currencies, and the increased positivity on the trading floor is creating more opportunities for specialists in these areas than we have seen for some time,” said Adam Jackson, managing director at Astbury Marsden. “Meanwhile, merger and acquisition teams are also expanding, particularly at more junior levels.”

Banks are hiring for their trading desks after some European and U.S. securities firms reported higher profits in their fixed-income businesses in the first quarter, boosted by a return of volatility in bond and currency markets, Astbury Marsden said. Acquisitions by U.K. companies overseas rose to the highest since spring 2012 after the business-friendly Conservative Party won the U.K. election last month, the firm said.

Adding traders and dealmakers means banks also have to reinforce their compliance divisions as banks try to stamp out wrongdoing and misconduct.

“We are seeing new compliance hiring to support the new front-office roles that are being created, and risk professionals are also in strong demand,” Astbury Marsden said.

(Bloomberg) — Societe Generale SA is entering the U.S. commercial-mortgage-backed securities market and has hired a team of more than 10 people from Royal Bank of Scotland Group Plc for the effort.

Wayne Potters, who most recently led RBS’s commercial real-estate group, will head the CMBS group for the French bank, according to an e-mailed statement. Societe Generale said it also hired Adam Ansaldi, who previously oversaw the CMBS distribution and securitization at RBS.

The bank is seeking “to develop asset-backed product capabilities that will take advantage of a trend towards increased securitization to finance the economy at a time when many banks’ capacity to hold assets on their balance sheets is limited,” according to the statement.

The move is part of a global initiative headed in the U.S. by Hatem Mustapha and comes as banks worldwide face stricter capital rules in the wake of the 2008 financial crisis. It also expands on a push by the lender into the market for U.S. government-backed mortgage securities that started in 2013.
Societe Generale’s expansion contrasts with a retreat from U.S. capital markets by foreign banks such as RBS and Barclays Plc. RBS, the U.K.’s biggest government-owned lender, said in November that its securities arm would be exiting U.S. mortgages amid new regulations and a plan to focus on its U.K. consumer and business bank.

Other members of the new Societe Generale group include: Gary Swon, Joey Petras, Chris Kramer, Peter Lewicki, Stewart Whitman, David Goodwin, Jim Barnard, Justin Cappuccino and Marty Black. The team will “engage in the full range of CMBS activities from origination to distribution,” according to the statement.

(Reuters) – Barclays Plc (BARC.L) is planning to raise pay for junior investment bankers as the British bank seeks to retain talent, Bloomberg News reported, citing two persons familiar with the matter.

Some junior executives of the bank are set to receive raises in salary and bonuses as high as 40 percent, Bloomberg said.

The plan has led to dissatisfaction among mid-level employees over the narrowing compensation gap with their juniors, according to the report.

Barclays’ overall bonus pool is expected to shrink, Bloomberg reported citing another person familiar with the matter.

The company will announce internally its decisions on pay this week, the report said.

Barclays was not immediately available for comment.

Juniors on the corporate-finance desk at Paris-based BNP Paribas SA (BNPP.PA) may also receive at least 10 percent more in salaries and 5 percent more in bonus, the report said.

Goldman Sachs Group Inc (GS.N), JPMorgan Chase & Co (JPM.N) and Bank of America Corp (BAC.N) were all looking to raise salaries by at least 20 percent for 2015, the report said.

European banks, including Barclays, Deutsche Bank, Credit Suisse and UBS AG, typically pay less than their U.S. rivals.

Emolument, a salary benchmarking site, said last month bonuses for advisory and origination staff in London could jump by 25 percent on average, based on data from 360 front office bankers working in London.

Payouts in equities would dip 3-5 percent and in fixed income, currencies and commodities bonuses would fall 5-7 percent, Emolument had said.

(bloomberg) The glory days may be over for Wall Street traders. Goldman Sachs just reported its lowest annual trading revenue since 2005. The bank made $1.16 billion from trading the fixed-income, currency, and commodity (FICC) markets in 2014—a 31 percent decline from a year earlier.

While Goldman Chief Executive Officer Lloyd Blankfein is staying positive about the future, analysts detect a change on the horizon—one where stricter financial regulations and a slow economic recovery will make it difficult for banks to make as much money from trading as they did pre-financial crisis. Here’s what Goldman’s news means for you.

So Goldman isn’t making as much money trading. Who cares? Aren’t they still really rich, anyway?

Goldman did manage to beat analysts’ estimates, posting $7.69 billion in revenue in the fourth quarter of 2014, but it’s been suffering a decline in its FICC revenue—which has traditionally been a bright spot for the bank—for several years now. That means it’s had to run its business with less money, and therefore pay its employees out of a smaller pool of money over time.

Take a look at Goldman’s compensation ratio—the money spent paying employees vs. revenue. As Bloomberg News’ Michael Moore notes, the share of revenue Goldman set aside to pay employees has steadily declined since the start of the financial crisis, falling to 36.8 percent in 2014 from 48 percent in 2008. Goldman hasn’t had a compensation ratio this low since 2009. While the ratio gives us a peek at what the average Goldman employee is getting paid, its decline over time shows business hasn’t quite picked up in the last few years.

What’s causing Goldman’s trading revenue to decline?

For one, the lack of volatility. When markets are volatile, they move more. That can translate into bigger profits for traders who make the right calls, since the price of equities and securities fluctuates more on a day-to-day basis. That’s also why many traders complain that it’s hard to squeeze out gains when volatility is low. With the exception of a few isolated days in the last few months, volatility over the past year has stayed far lower than at some points in 2010 and 2011.

It’s not just trading—stricter financial regulations have limited lots of moneymaking enterprises that were huge for banks pre-financial crisis, including investment banking. Many have shut down or downsized previously lucrative divisions under pressure to stay in line with regulators’ rules.

Is this the new normal? Will traders ever be the top dogs in banking again?

It depends whom you ask. Blankfein has said he thinks this dip in trading revenue is temporary.

Others are more skeptical. Banks have been whining about market forces cramping their trading revenue for some time now. While Goldman seems to be doing the best it can under the circumstances, “it’s hard to predict when we return to some level of healthy volatility and strong business growth globally that could drive better trading activity,” Devin Ryan, an analyst at JMP Group, told Bloomberg News. Facing a weak global economy, stricter financial regulations, and slumping volatility levels, banks may never again post the type of trading revenue they saw in the heydays of the late-2000s.

Does this mean all of Wall Street is doomed?

Nah. Despite investment giants such as Goldman, JPMorgan Chase, and Bank of America taking hits on their earnings in 2014, other pockets of Wall Street have been doing quite well. Last year was the biggest year for U.S. initial public offerings since 2000 (thanks, Alibaba). Mergers-and-acquisitions activity surged to a record high of $1.6 trillion in 2014. Even the equity market has been defying the bears’ warnings, with the benchmark Standard & Poor’s 500-stock index finishing off last year with an 11 percent gain.

Investment banks may hold less appeal for young professionals, especially if the fat compensation packages that have traditionally attracted the brightest college and MBA graduates start to dwindle. Graduates of some top MBA programs have started to pick other career paths. At Harvard Business School, for example, only 5 percent of graduating MBAs took jobs in investment banking in 2014, down from 12 percent in 2007.

Paul Mandel have teamed up with Marika Messager, a London based Career Coach.

Marika brings a background of Equity and ETF trading to the business, making her perfect for our candidates and clients alike, looking for their next move in the financial markets.

http://www.paulmandel.com/about/executive-coaching/

(Dealbreaker) Everyone based in London is said to be expecting big money this year.

Despite recent curbs on bonus payments in Europe, senior employees of financial companies in London expect their bonuses for 2014 to be 21 percent higher than last year, according to the results of a survey by a recruiting firm released on Monday. More than 80 percent of managing directors and partners at financial companies in the City of London are expecting a bonus this year, at an average of 124,680 pounds, or about $194,749, according to an online survey of financial services employees by the recruitment firm Astbury Marsden.

That is up from an average of £102,930 in 2013.

(Bloomberg) Investment-grade corporate debt sales have surged to a record $1.15 trillion this year as the most creditworthy borrowers flocked to the U.S. bond market to take advantage of historically low interest rates.

Apple Inc. (AAPL), Verizon Communications Inc. and Oracle Corp. were among borrowers that helped swell issuance this year. JPMorgan Chase & Co. was the the top underwriter for the fifth-straight year, grabbing 12.7 percent of the deals, according to data compiled by Bloomberg.

Alibaba Group Holdings Ltd., Asia’s biggest Internet company, led borrowings of more than $126 billion this month that helped sales breach last year’s record of $1.13 trillion. Companies have raced to the market to lock in borrowing costs that remain within 0.5 percentage point of the all-time low of 2.65 percent reached in 2013, Bank of America Merrill Lynch index data show.

Investors purchasing the debt have reaped 7.3 percent gains in 2014, overcoming the 1.5 percent loss last year, index data show. Investment-grade bonds are rated above Ba1 by Moody’s Investors Service and BB+ at Standard & Poor’s.

Apple’s seven-part, $12 billion offering in April was the biggest deal recorded this year as the maker of iPhones and iPads returned to the debt market to raise money for its enhanced shareholder-reward program. The company also debuted euro-denominated bonds earlier this month.

(efinancial) It’s that time of year when line managers in banks look at their depleted bonus pools and then look at their headcounts. If people are to be happy, then either one must grow or one must shrink. Usually it’s headcounts that shrink. And usually it’s expensive senior staff who are at the forefront of the shrinkage. This year, Citi seems to be playing the game to a tee.

Following last week’s revelation that staff are being exited from Citigroup’s markets division two months before bonuses are announced, the Financial Conduct Authority (FCA) has updated its register to reflect some of the recent exits. The FCA Register doesn’t clarify why people left Citi – they could have left entirely of their own accord, but it does show that they have stopped working for the bank in the UK. Departures include: Caroline Clarke, the global head of specialist sales at Citi, who has gone to become head of corporate relations at Autonomous, the independent research company, Nicolaus Von Habsburg, a director-level interest rates salesman hired by Citi from Morgan Stanley in 2010, along with Stephen Reid and Scott Harris, two other directors in the London office.

At the same time, the FCA Register suggests that Citi has made two junior hires in the past week or so. They are: Muriel Perren, a credit researcher focused on the financials sector from Morgan Stanley and Claude Stéphanie Ngningha, an associate in M&A from Rothschild.

Citi didn’t immediately return a call on its staff changes. However, this would not be the first time that the US bank has dropped senior staff just before bonuses. It made layoffs on the trading floor in December 2011 and December 2012. At least it has form.