These are heady times for Eurobond traders, caught in a spiral of salary increases sparked by the latest firms to make an assault on the market. But the age-old nostrum of the bond markets, buyer beware, could equally apply to banks on a recruitment spree.
The recruitment merry-go-round for Eurobond traders appears to have spun out of control. Simon Fry, Stefan Ludwig and John Carroll set a new benchmark for Eurobond traders' salaries in November 1994 when they moved from CS First Boston to Nomura for a reputed total of $20 million over three years. Since then the market hasn't looked back.
"Eurobond traders are enjoying a mini Big Bang," says one trader at a Japanese firm. The beginning of the year usually heralds a lull in movements as traders await their bonuses. But the Rose Partnership, a recruitment consultant, had its most profitable quarter ever at the beginning of 1996, largely on the back of the hiring frenzy for Eurobond traders.
Edson Mitchell's arrival at Deutsche Morgan Grenfell from Merrill as head of global fixed income presaged an exodus from the US house to DMG.