Bonuses for Wall Street’s investment bankers are forecast to jump as much as 35% this year – although experts have warned that payouts could be knocked by stock market volatility and an economic slowdown in the US.
Investment bankers who work in debt underwriting are expected to see the biggest rise, with bonuses forecast to soar 25% to 35%, after a jump in the number of companies and governments issuing investment-grade bonds in the first half of the year.
Equity underwriters, who help issue fresh company shares, are close behind, with the New York-based pay consultancy Johnson Associates predicting a 20% to 30% rise in bonuses after a jump in stock market listings.
However, Johnson Associates warned that payouts could be affected if market and economic conditions falter in the final six months of the year. “Recent market volatility and potential softening of the economy is leading to questions on the momentum going into the second half,” it said.
The Guardian / August 9, 2024