eFinancialCareers

Who'll benefit and who won't from the chaos in the markets? Here's our verdict.

The winners

Derivatives Documentation Specialists: Know how to settle a derivatives trade? This could be your lucky day. According to Financial News, last week's trading volume for credit derivative products was so high, derivatives operations teams were overwhelmed. Banks may yet turn to temps to help out. Oliver Harris, managing director of the financial services contract division at UK recruitment firm Robert Walters, says demand for ISDA documentation expertise is already at a high.

Risk Managers: Hedge funds are paying chief risk officers in excess of $1 million in an effort to lure them from banks. The recent volatility means risk managers' services are more highly prized than ever.

ECM Professionals: This could be the moment corporates turn to equity markets to raise additional funds. Craig Coben, managing director of Europe, Middle East and Africa capital markets at Merrill Lynch, seems to think so: "When we had strong credit markets, private equity was outbidding the equity market as a capital-raising strategy for companies," he told Financial News. "But, with the recent credit correction, the IPO becomes a relatively more attractive channel for monetizing an equity stake."

Private Bankers: Private bankers might not have as many clients, or as many assets to manage, once wealth has been decimated by plummeting markets. But those who still fall into the high-net-worth category will find the advice of a good private banker all the more worthwhile. For the moment, there's no sign of Barclays Wealth abandoning its recruitment drive and Alan Johnson, a Wall Street compensation specialist, predicts wealth managers' pay will rise 10 percent this year.

Restructuring Specialists: If the chaos in the markets spreads to the real economy, demand for restructuring professionals could yet receive a much anticipated bump.

Traditional Fund Managers: With many hedge funds struggling, long-only asset managers may yet find it easier to attract and retain staff. With luck, they'll also make money from buying at the bottom of the market.

The Losers

Quants: Quants, particularly those who work at quant-related hedge funds, haven't come out too well in recent weeks. Goldman Sachs' pumped a $3 billion emergency cash injection into its Global Equity Opportunities (GEO) fund after it lost 32 percent of its value. Competitors also suffered dramatic losses. One can only assume the quants who built the models for these funds won't be quite so popular - or well-paid - in future.

Credit Traders: Last week, UBS warned of a "very weak trading result" in the third quarter if markets continue to fluctuate. Financial News says Deutsche Bank is "reassigning" staff on one of its London credit trading desks after they lost around €100 million.

Hedge Fund Managers: Even hedge funds that didn't move too heavily in the sub-prime sector are feeling the pain. Witness Sowood Capital Management, a $3 billion fund that collapsed in July despite having limited sub-prime exposure, according to the New York Times. Funds that want to stay upright may be forced to waive fees, and therefore reduce pay. John Devaney, founder of another ailing hedge fund, United Capital Markets, has already put his helicopter and yacht up for sale. (Keep an eye on eBay for other playthings of the hemorrhaging hedge fund moguls.)

Prime Brokers: Risk aversion means banks' prime brokerages have become distinctly sniffy about lending money. A few weeks ago, the Financial Times reported banks were imposing tougher lending terms on hedge funds, thereby threatening to leave prime brokers without anything to do except nurture losses at hedge funds they've loaned to already. Nonetheless, compensation expert Johnson predicts prime broker pay will rise 15 percent this year. Some banks are hiring regardless: Sam Molinaro, chief financial officer of Bear Stearns, told Financial News that the bank has no intention of dropping plans to expand its European prime brokerage business, and Lehman Brothers recently hired a capital introductions specialist here in the U.S.

Sub-Prime Specialists: Unsurprisingly, anyone who has anything to do with the U.S. sub-prime mortgage sector isn't exactly de rigueur right now. Bear Stearns has cut 100 staff from its credit unit, Lehman Brothers has chopped 400 from its sub-prime mortgage unit, and Financial News says UBS is sharpening its blade.

Leveraged Financiers: Debt is hardly a flavor of the month and banks that failed to anticipate this have been left with a nasty taste. According to the Telegraph, the nine banks who underwrote Kohlberg Kravis Roberts' £11 billion bid for Alliance Boots, led by Deutsche Bank, JPMorgan and Unicredit, have been unable to sell a single penny of the £9 billion debt. It doesn't look good for leveraged finance bonuses.