How's everyone doing profitability wise this year? Volumes/Volatility for the most part is down big relative to what we have experienced over the past few years. I heard Jane Street/FlowTraders/etc. had a rough Q2. Anyone know how Q3 went for most hedge funds/prop shops? Many friends at some big hedge funds have indicated they're having a rough year too.
Are many professionals expecting a big dip in their bonuses this year?
Based on the most helpful WSO content, it seems that the financial industry has been experiencing some turbulence, which could potentially impact bonuses. The discussions indicate that there's been a significant surge in Investment Banking revenues, but this doesn't necessarily translate to a proportional increase in bonuses.
There's also been mention of a shift in how people view their work, especially in the wake of COVID and its aftereffects. This could lead to a higher than usual number of people leaving their jobs in banking, particularly at the analyst, associate, and VP levels.
In terms of specific firms, there's a mention of Wells Fargo where bonuses were reportedly cut, particularly affecting analysts and associates. There's also a mention of William Blair, where morale is reportedly low due to bonus-related issues.
However, it's important to note that these are discussions and speculations, and actual bonus figures can vary widely based on a multitude of factors. It's always a good idea to keep an eye on the market trends and stay informed.
Sources: https://www.wallstreetoasis.com/forum/investment-banking/bonus-season-comps?customgpt=1, WB Bonuses, Wells Fargo bonuses down by 30%?!, 2022 Compensation - What Are You Guys Expecting?
Not hedgefund, but SMM at a BB: YtD is about 0.5 compared to last year YtD. Volume's seriously down urgh
Seems the same at my bank for equities, curious to find out whether this is true for FICC, rates vol going up recently
interesting.... what asset/region class, and how was last year relative to the past few years (2021/2020)?
Cash Equities, APAC. Can't be more specific though. Haven't got the faintest idea regarding the FICC, but equities in APAC was down so bad due to China/HK liquidity this year. SO I guess Cash Equities would be like the most badly hit asset class in this region.
20/21 was a good year, 22 little bit down, 23 just crashed.
wow, really? Everyone that i know who trades APAC equities is getting killed this year. Volatility is low, volumes (shares and notionals) have taken a dip much steeper than in the US/EU, plus cost of trading in APAC is sgnificantly higher than in the US, especially China/HK which have stamp taxes. I would have expected APAC equities to be performing the worst. If true your desk is definitely performing at the top of the market.
What city are you in?
Most types of traders and trading firms are complaining about this year. Market makers, physical commodities traders, discretionary prop, sell-side trading, and hedge funds all have seen revenues drop this year. Probably an overhang after last year's record profits. Things take time to mean-revert.
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