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28 Apr 2018 (AFR) – Why investment bank research analysts are leaving their jobs in droves

(28 April 2018, AFR, p23, by Joyce Moullakis)

A snapshot of analyst moves in 2018 (AFR)

A snapshot of analyst moves in 2018 (AFR)

‘A seismic shift is battering the research departments of investment banks. Each year, after the rush of February corporate reporting season and as they inspect bonus cheques paid by their European and Wall Street head offices, investment banking staff take a moment to ponder their future. Often a bit of movement between banks is common, but this year a major shift has occurred in the equities research ranks. Analysis by AFR Weekend shows that at least 16 research analysts have signalled a move in the last four months, illustrating a wave of personnel change that is dramatically altering the shape of the banks’ teams.’

<snipped…>

‘McKinsey is among firms that have predicted an increase in the “magnitude and the pace of change” in equity research, which may reduce the scale of research businesses and reshape their economics. It expects the majority of banks will rationalise their research and trading functions as a result. Others are making more dire calls. Quinlan & Associates, a Hong Kong-based consultancy, estimates that research revenues may decline by 40 per cent as fund managers cut the number of research providers they use and the amount they spend. Liquidnet’s chief executive Seth Merrin has called it the beginning of a “new world order”.’

Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

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