But Napier Scott chief executive Shaun Springer, believes some salary levels may be too inflated. “The credit derivatives bandwagon gathered pace during 2002, with second- and third-tier banks struggling to fill a growing number of vacancies as the market continued to expand,” said Springer. “Although we see no sign of the pace slackening, my feeling is that a lot of institutions will now be realising that they may have spent unwisely in their race to gear up.”
Springer envisages 2003 as a year when banks will be more selective in their credit derivatives hires. But for staff with the right credentials, seven-figure packages will still be available.
He added that while credit default swaps trading is effectively commoditised there is still an excess of vacancies for specialists in exotics, structuring and synthetics.