The credit crisis is taking its toll on capital markets, but M&A bankers are still hot property. Morgan Stanley is the latest bank to capitalise on Asian opportunities – it announced last week that it’s transferring Scott Matlock, a senior London M&A banker, into a new position as chairman of M&A Asia.

Matlock’s a senior operator who will be out winning clients, but recruiters say banks are equally keen to add to their junior M&A expertise. Matthew Hoyle, Asia Pacific director of headhunter Matthew Hoyle International, says “relevant experience” is key, and that banks are still selectively hiring top-quartile candidates from rivals in the region. “Unlike in the US and Europe, good people can still move quite easily,” he says.

Gary Lai, manager of front-office banking at recruiter Robert Walters Singapore, says associate level M&A bankers (with around three to six years’ experience) are most in demand: “This is because many banks have been in constant shortage of experienced associates and are hoping to back-fill those levels.”

The bad news is that pay for junior M&A bankers has remained constant. A first-year M&A analyst in Singapore can expect to earn between S$180k-$200k per annum and a first-year associate can expect to earn approximately S$320k-$350k, says Lai.

He says this is because whilst there is demand for experienced associates, many banks are able to cope with their deals based on current staff strength. Unless deal volumes increase, this is unlikely to change.