Lower Bonuses Await US Corporate Debt Traders: Credit Weekly
Bloomberg
With bonus season just a few months away, corporate bond traders are one of the few groups on Wall Street expected to see their overall compensation slip for this year.
Overall pay for US traders in the investment-grade bond market is expected to fall by 6.6%, while compensation in the high-yield market is seen dropping by 8.6%, according to Options Group. The forecasts reflect salaries paid in 2025, and bonuses for performance this year that are typically paid in early 2026.
“I think some of the firms have overextended themselves and gone further out on the risk curve than we think they should,” said Alan Johnson, founder and managing director of Johnson Associates. “But so far these products have done well for their investors.”
Wall Street pay experts see market turbulence calming down in 2026, which could lead to stronger performance in some fixed income asset classes, yielding even better compensation.
“I think some of the winners will be products with less volatility,” Johnson said, singling out credit, mortgages and Treasuries.
Bloomberg / November 29, 2025
