Regional US banks on hiring spree as big rivals cut back

摘要

Smaller, middle-market focused banks are hiring new bond traders and salespeople, sensing a growth opportunity as bulge-bracket firms cut resources and become pickier about their clients. Regulations such as the Dodd-Frank Act and the Volcker Rule have made bond trading less profitable and driven larger banks to cut risk-taking, trading volumes and client lists. According to a survey by Greenwich Associates, bulge-bracket banks' share of secondary US bond trading volume dropped from 85% in 2012 to 77% in 2015. Banks are also taking less risk in trading. Primary dealer net positions in investment-grade and high-yield bonds have plummeted by 80% since the start of 2015, to just US$3bn.