Just about a month or two ago, people were proclaiming that a golden era for boutique investment banks and trading outfits was at hand. Bankers at bulge brackets firms were streaming to take offers at boutiques, driven by the view that they would be able to make more money there than at a TARP-ridden bank. But focus on pay has abated somewhat, and the top investment banking powerhouses may pay back their funds quicker than people assumed.

At the same time, there are a lot of boutiques out there--with names like Ondra Partners and Stone Key Partners--to compete with more established players like Lazard and Perella Weinberg and Greenhill. Breakingviews wonders if there will be enough business to go around. At the same time, the bulge bracket will fight tooth and nail to defend its turf. So the bloom may be off the rose already. The key will be to have a niche, like KBW in banking. 

For more:
- here's the Breakingviews article via the New York Times

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