Not long ago, Bloomberg ran an article suggesting that a lot of investment banking jobs are disappearing in London even as banks continue to hire in the US. Now, Dealogic has released some figures suggesting why this is so - for M&A bankers at least.
Year-to-date, Dealogic puts European M&A revenues at $3.1bn. This is the lowest they've been in Europe since 2003 and is down 32% on YTD 2011. In enormous contrast, Dealogic says US YTD M&A revenues have risen for the third consecutive year, that they're up 2% on 2011 and at their third highest YTD level for the whole of the past decade.
None of this bodes well for M&A jobs in Europe. Nor does it bode well for Nomura's M&A bankers following William Vereker's apparently voluntary demotion as their head of investment banking. Vereker is widely expected to leave soon. Yesterday Nomura said it was committed to cross-border M&A, which we took to imply that M&A jobs at the bank were relatively safe. The events surrounding Vereker now suggest they're not safe after all. This is hardly surprising given that Nomura has spent the past five years building an M&A business and has been rewarded by consistently falling M&A revenues.
Other of Nomura's M&A bankers may want to follow Vereker. But where can Nomura's M&A bankers go? New York, maybe?
Vereker may only be staying to work on the Xtrata Glencore deal. (Reuters)
10 things to do if you were fired yesterday. (James Altucher)
Schroders is hiring equities analysts for its multi-asset group. They seem to come from a buyside background. (Financial News)
Bankers working for just their base salaries? Things really are changing in the world of finance. (Alphaville)