The bloodbath in equity research may be over. Research headcount is rising again at the big investment banks and brokers in Europe, four years after changes to the way they were paid by asset managers led to deep cuts.

Asset managers seem to have worked out how to judge the value of what they are getting and are rewarding research providers accordingly. At the same time, banks have decided good research is important for winning business advising corporate clients on deals, so they are paying for talent again. The hope is the market has at last bottomed out — at least, for now.