Tags: stock | Wall | Street | bonuses

Stock Market Strength Seen Boosting Wall Street Bonuses

Tuesday, 24 Dec 2013 01:39 PM

By Dan Weil

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The red-hot gains of the stock market this quarter will improve bonuses for stock traders and investment bankers, The Wall Street Journal reports.

The Standard & Poor's 500 Index has soared 8.8 percent since Sept. 30. And initial public offerings are making their strongest run since 2010 this year, with more than $172 billion of IPOs executed, according to Dealogic.

Things weren't looking so good earlier in the year.

Editor’s Note: Opinion: Retirees to Be Hit With Social Security Cuts

"The first three quarters were iffy to negative," Richard Lipstein, a managing director at Gilbert Tweed International, an executive-search firm, told The Journal. "You could make the argument that 2013 was rescued by the fourth quarter."

But bond traders, who for years led the bonus race amid bull markets in their asset class, won't fare as well this year, The Journal reports.

Bonds have slumped since May amid anticipation that the Federal Reserve would taper its bond buying purchases, which it finally decided to do last week.

"The winds of favor have really shifted against . . . the bond traders and commodities traders that for so long did really remarkably well," Brennan Hawken, a UBS analyst, told The Journal.

Andrew Ross Sorkin of The New York Times notes a shift in bonus money going from corporate strategic advisers to asset managers among others. And not surprisingly, the losers aren't happy.

"It’s hard for some of my guys to accept, but the money is going to different people this year," a senior executive of a large bank told him.

Editor’s Note: Opinion: Retirees to Be Hit With Social Security Cuts

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