(by Ameli Berksman)

Europe investment banking bonuses will probably see no rise with the revenue impacted by rate hikes and stock trading slowdown, economists say.

Third-quarter revenue for the investment banking disappointed as Europe’s biggest banks UBS AG, Credit Suisse Group, and Deutsche Bank AG faced declines in revenue at their securities units from the prior three months.

Leveraged finance and equity derivatives banking analysts are likely to see higher investment banking bonuses up to 30%. For those underwriting stock and bond sales banking bonuses may decline 20%, survey shows.

``No one will pay exceptionally well. After a fantastic beginning of the year, it went down from there,’’ said Jason Kennedy, a managing partner of Kennedy Associates.

Executives of financial services companies are estimated to see bonuses up 8% in 2004 as compared with the same period of the previous year 25%.

Credit derivatives traders’ bonuses will likely reach as much as $3 million this year, the newest data shows.

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