Investment banks in the US and Europe have hired extensively this year to keep pace with booming conditions in the global capital markets.

Merrill Lynch has been among the most active of the US banks, recruiting 1,200 for its investment banking and global markets division. UBS leads the way in Europe, adding more than 1,500 staff. Merrill's hiring spree brings its total investment banking staff to 14,600, the highest level for six years. The division includes investment banking, debt and equity underwriting, and trading. European investment banks have added more than 5,100. HSBC has hired more than 1,000, while SG Corporate & Investment Banking has added 750, Barclays Capital 600, Royal Bank of Scotland 500 and Deutsche Bank 447. French rival BNP Paribas is on track with its plan to add 500 staff this year. The staff hired by Merrill are in addition to the 1,400 appointments made last year, according to a report by Banc of America Securities analyst Michael Hecht, who met Dow Kim, Merrill co-president of global markets and investment banking. Productivity per employee has risen 57% over the same period, according to Hecht. His report said Merrill had been increasing its markets and bank staff numbers after extensive lay-offs between 2001 and 2003, when the division was down to its lowest number this decade at 10,300.