With investment banking and trading being two of the areas hardest hit within the 160,000 financial services jobs lost around the world, many analysts will find themselves unemployed as well, the International Herald Tribune reports.
Theres wicked consolidation occurring and, in the process, a lot of analyst jobs are getting cut and not coming back, said Jim Bianco, president of Bianco Research.
What this means for mutual fund companies, of course, is that the sell side is paring back on its research, making it more important than ever before for the buy side to develop its own research. As well, investors are likely to gravitate to larger companies that are covered by analysts.
Those research positions wont come back in 2009 and possibly in 2010, said Lawrence McDonald, formerly with Lehman Brothers.