Bonus Watch '15: Rate Traders Counting On Mama Yellen

If she cares about them at all, she knows what must be done.
Author:
Updated:
Original:

If everybody (Janet) plays their part, interest rate traders will see a nice li'l bump come bonus season, in addition to the satisfaction associated with beating off would-be employers with a stick. Come on, Big J-- they need this. (Once you've earmarked future earnings for top of the line calf implants and blow, there's no turning back.)

Expectations have been mounting that the US central bank is on the cusp of increasing borrowing costs for the first time in almost a decade. This has spurred activity in interest rate swaps and options in the first half, pushing up rates revenues at all the biggest banks bar HSBC and BNP Paribas. As a result, senior rates staff at US and European banks are on course to receive average rises in total pay this year of about 10 per cent, according to Options Group, a New York-based recruiter. The higher awards come as peers in other divisions such as commodities and securitised products are facing flat or falling payouts. They also signal “a war for talent,” according to Jessica Lee, a director at Options Group.

US banks lock down rate traders on pay ahead of possible Fed move [FT]

Related