Wall Street traders have had a tough year - and it's eating into their bonuses
While investment bankers will probably see big jumps in their annual bonus, securities traders likely won't get the same increase - and could even see a 5% drop, according to a new report from HR consulting firm Johnson Associates.
The data was first reported by Bloomberg News' Sarah Ponczek:
As markets climbed steadily higher this year, the VIX volatility index plunged to historic lows. Trading desks, once the powerhouse of banks' profitability, took big hits because of the drop.
Goldman Sachs, JPMorgan, and Bank of America all reported declines in fixed-income trading in the second quarter. Morgan Stanley was the only bank to post trading gains, despite what the CEO called a "subdued environment."
Hedge fund employees can also expect their bonuses to increase up to 5% this year. That's despite some name brand funds not doing well. According to investor letters obtained by Business Insider, many major funds are struggling to find positive returns.
Maverick Capital, a $10.5 billion hedge fund manager, made no money on its flagship fund in the first half of 2017. The S&P 500, which the fund compares itself to, rose 9.3% over the same period.