What to expect in FICC hiring in 2018

Toward the end of 2017, we interviewed a large number of market participants regarding 2018 prospects.

Many of them believe that the recent US tax reform bill could translate into a modest boost for US growth this year and could also have a positive impact on some selected areas within fixed income, currencies and commodities (FICC) hiring. Government bonds, European credit and commodities will continue to be severely challenged, however, and several banks are still reassessing resources for those desks. Market sentiment anticipates only modest returns for US high grade in 2018. Prospects for US high yield and emerging markets credit businesses are currently much stronger and hopeful than for high grade; and opportunities for talent in those sectors should be abundant. Many securitized products sectors tightened in 2017 but the overall market still remains strong, with high demand for human capital across the range of products. FX will continue its importance as a significant revenue contributor and we anticipate many traders and sales people moving in 2018. Commodities desks will need to capitalize on a few tactical opportunities that will arise throughout the year and redeploy some of their talent.