Fixed income bonuses look set to disappoint

As banks get ready to divide up their bonus pool in December or early January, some fixed income traders had better get ready to be disappointed.

According to a third-quarter 2005 compensation and benefits update from New York compensation specialist Johnson Associates, fixed income bonuses will be the same as last year or, at most, 5% up, as fixed income comes off the exceptional year it had in 2004. A report also published in November by Options Group, the “2005 Global Financial Market Overview & Compensation Report”, spells even worse news for fixed income traders.