2009 in review: the winners
Here we present the champions of the year, the professionals who flourished during the financial crisis. Next week...the losers.
Retail credit underwriters
Credit underwriters in the retail banking sector have enjoyed a bumper 2009, says Sandra Rowlingson, divisional manager, risk management & financial markets division, Bluefin Resources.
“They were in very high demand from the major banks due to a number of factors, predominately the fact that interest rates tumbled to a generational low, the government guaranteed the deposits of ADIs, and the first home buyers’ bonus. The residential mortgage market boomed and the big banks increased their market share due to these factors as well as the exit of some second-tier lenders,” Rowlingson tells eFinancialCareers.com.au.
Financial-institutions risk analysts
It was also a busy year for credit risk analysts assessing the health of their peer banks and other financial institutions, according to Barry Harte, director, Pentire Associates Australia.
“Allegedly some thirty-somethings stopped dying their top knots as the demand for staff with ‘a bit of grey hair’ grew. With a small, specialised market and very specific experience sought by employers, it wasn’t long before desirable candidates became scarce and some overseas returnees began to feature.”
Insolvency specialists
The number of companies in financial difficulty increased significantly during 2009. “The squeeze on cash flow also meant businesses needed to recoup outstandings immediately, with financially strong businesses taking advantage of the situation. As a result, the need for insolvency specialists increased this year and is expected to continue in 2010,” comments Sean Condon, consultant, banking & finance, Manpower Professional.
Distressed debt funds
The carnage of late 2008 created opportunities for vulture funds, keen to buy debt at 2009’s highly discounted prices. These firms have provided homes for leveraged financiers, says Victoria Biggs, a partner at Platinum Pacific Partners.
“They have also benefited from foreign banks exiting Australian shores and have seen debt in healthy companies attractively priced for a quick sale. While there are still few of these businesses operating in Australia, they have provided some recruitment within the alternative funds sector this year,” adds Briggs.
Lawyers
Although demand for lawyers within financial institutions was extremely quiet in early 2009, it picked up in the final few months. Opportunities have been emerging in specific areas including, but not limited to, commercial litigation/insolvency and dispute resolution, and corporate advisory/regulatory, according to Jacob Smith, manager, risk management and compliance, Robert Walters Sydney.
“We are seeing more opportunities, and on the whole sentiment has improved markedly, with many clients openly discussing plans for further recruitment for the remainder of 2009 and early 2010.”
Wealth managers with plenty of FUM
In a year when most areas of banking saw significant redundancies, wealth management recruitment was comparatively active. Firms were eager to attract staff with more than $60m of FUM, says Toby Greenane, Pacific Rim executive search, banking & finance, Bluefin Resources.
“Given market conditions, wealth managers with this type of FUM proved harder to find than Wally adorned in his finest red and white striped attire. Those few that exceeded these numbers were either firmly entrenched in their current roles, or had been quickly snapped up,” adds Greenane.
Technical accountants
“The demand for technical accounting skills has been driven by the regulators’ increased focus on capital holding, investor demand for return on equity efficiency, and a greater importance being placed on correct value of derivative positions,” explains Sean Condon from Manpower Professional.
ECM
“The record profits made by banks through secondary capital raising activity have been well documented in the press. In fact many banks in Australia have reported bigger profits than in any other year, with large corporates rushing to shore up their balance sheets following high-profile company failures,” says Victoria Biggs from Platinum Pacific Partners.
This has created opportunities for ECM professionals. “Investment banks have not been aggressively hiring, but ECM professionals have mostly avoided retrenchment. In the second part of the year, now the markets have also opened for IPOs at the small and mid- cap end of the market, there has been growth in the local brokers, and many have either restructured or grown their teams by hiring externally.”
Compliance
It has been an important year for regulatory change, with ASIC taking over market supervision responsibilities from the ASX, and new regulations around margin lending, unfair contracts and anti-money laundering.
“The ban on short-selling of financial stocks has also been grappled with by many financial services firms through 2009. All of these new regulatory obligations have pushed compliance recruitment into the business-critical domain when it comes to hiring,” says Jacob Smith, manager, risk management and compliance, Robert Walters Sydney.