A study by Reoch Consulting, a credit derivatives consultancy firm, suggests banks increased spending on credit derivatives technology by 25% last year, while smaller boosted spending in the area by a massive 55%. It says similar increases are expected in 2006.
The study also found that the talent pool available for credit derivatives operations rose 32% last year. This is just as well: recruiters say banks are feverishly hiring.
"We've seen significant demand for IT staff to work with derivative products, and credit derivatives specifically," says Richard Lloyd, head of banking technology recruitment at recruitment firm Robert Walters. "The early indications are that this will continue for at least the next six months," he says.