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“There was a lot of day-to-day stuff and that’s where these traders make money -- in the volatility,” Alan Johnson, managing director of Johnson Associates, said in an interview. “It’s not like they were extremely volatile, but more so than in recent years.”
Private equity managers benefited from inflows, while stock and bond salespeople had a busy year, according to the report. Financial firm managers -- a category that includes business heads, controllers, senior attorneys and other staff -- are also set for bumps. The U.S. tax overhaul that Republicans pushed through last December bolstered profits at the nation’s largest banks.
Investment banking advisers may suffer the only cut, according to the survey. Still, that business typically pays the highest bonuses on an absolute basis, Johnson said.
The good times may not last.
“We’re not seeing 2019 as rosy,” Johnson cautioned. The report predicts banks will probably face geopolitical turbulence and pressure to lower fees next year, while new technology eliminates jobs and makes it easier for firms to pay less.
This article was provided by Bloomberg News.