The financial services industry hiring freeze is melting. While the hiring demand for cash equities traders and salespeople have picked up, other sectors are still waiting for the sun to return.
Financial News spoke with London-based headhunters to feel out where the most hiring is taking place in finance. Below is a breakdown of their findings:
1. Equity Sales and Trading -- While there is a general demand for analysts in this sector, those that are focused on financial institutions, energy and natural resources will be receiving extra attention from headhunters. Morgan Stanley said earlier this month it's in the market for several hundred traders specializing in currencies, equity derivatives and commodities. Investment banking firm Jefferies has made a spate of hires last year and isn't done adding to its ranks yet. Other banks in on the hiring frenzy are Barclays Capital, HSBC, and Nomura.
2. Fixed Income Sales and Trading -- Demand for these finance pros aren't likely to die down anytime soon. In particular, there are emerging opportunities in emerging markets and high yield sales and trading.
3. Derivatives -- Whether time will ever rid these products of the infamy they gained during the financial crisis is hard to tell but, for now, enough time has passed to indicate a slight uptick in recruitment for pros fluent in structured products. Scant regulatory changes and a better understanding of credit-default swaps could increase the use of the notorious products as actual risk-management tools, making way for future hiring. Cut backs in derivatives staff is easing up with demand leveling off this year, reports the Financial News.
4. Commodities -- Hiring activity since 2009 has shown that banks agree that having finance pros with an expertise in this sector is a worthy commodity in and of itself. If recent deals are any indication (i.e. Nomura's acquisition of the trading arm of an Canadian oil company Nexen and JPMorgan's near purchase of RBS and Sempra's energy-trading firm), energy seems to be the sweet spot this year. Separately, the Financial News reported today BofA Merrill Lynch is building its London commodities team, dusting off the commodities and energy trading desks there after closing them a little over two years ago.
5. M&A -- It's greener pastures for M&A teams that focus on natural resources, utilities and financial institutions this year. And it's all hands on deck with analysts, associates and vice presidents in demand across the board. Big players like BofA Merrill Lynch and Barclays Capital are hiring while smaller boutiques like RenCap and Piper Jaffray are bulking up.
6. Back Office -- It's about control and management in the aftermath of the crisis. Recruitment abounds for operations, risk management and accounting. Job opportunities are also on the rise for product control staff who know their way around fixed income and equities.
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Write to Yoree Koh