Equities or Fixed Income Question in Interview

I had this question come up in a S&T interview. One of the MD's who worked in fixed income asked me what would I prefer, Fixed income or Equities.

I answered that I'm open to both etc etc. Was this a bad answer?

The interview was for an Equity S&T summer analyst position.

 
Best Response

I really disagree with that statement. Unless you are running some sort of book with a heavy prop element equity trading is mostly about understanding liquidity and the market microstructure. Understanding market microstructure is something that is heavily quant oriented hence why computers are running these HFT stat arb programs based on order book changes. That being said doesnt meant you have to be a quant genius to understand when and how to find the liquidity. The math is simple stuff nothing past basic algebra.

Things like understanding risk and liquidity are sorta a gray area because they are conceptual and often times difficult to define quantitatively. That being said I know relatively speaking compared to fixed income they are more qualitative.

Disclosure: I work on an equity desk

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.
 

Yes relatively speaking way less in depth math but really its an entirely different skill set. In derivatives tho there is always some form of hedge tho to offset risk not really the case in equities.

I would say the the single 2 biggest difference in equities vs fixed income (mostly speaking of the exotics) are the amount of advanced math and the pace. The fixed income guy knows the math side inside out but when placed in a situation where markets are quickly moving they would not be used to the rapid pace of things. Of course the equity guy wouldnt know where to begin with the math equations/pricing models. To say the least they are very different skill sets.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.
 

I'd say its generally better to say which one you are interested in. They are entirely different and "I'm open to both..." is probably not the best answer to the question. That being said - if you were interviewing for an Analyst position, they probably don't expect you to know EXACTLY what you want to do and are more interesting in getting the best candidate.

 

yes as to the answer to the actual question im with steak on this one. Definitely helps define where someone stands on the division.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.
 

Interesting, I should have been stronger with saying I'm interested in Equities (after all it was an Equity position), nevertheless, I feel like you shouldn't limit yourself and so no I'm only interested in equities when in fact I'm interested in anything on the sell side.

 

Et praesentium sunt facere inventore. Eaque facilis sint soluta omnis vel voluptas. Veniam sed in illo placeat aperiam aut.

A consequatur aut omnis explicabo eos. Praesentium facere alias temporibus ex omnis tenetur non. Tempora natus laudantium laborum aut. Ipsam optio ea est sit voluptate temporibus. In inventore qui quia ullam qui totam veniam. Facilis placeat ut incidunt deleniti voluptas magni facilis. Sed ut delectus repudiandae aut.

Ea minima dolore consequatur id vel saepe recusandae. Est ut provident eos occaecati doloremque in. Et qui eveniet animi tenetur aut nemo recusandae. Similique quia repudiandae eius.

Laborum quis quod delectus sunt exercitationem molestias omnis. A quia ut officiis incidunt blanditiis quia quia. Commodi rerum quas possimus at hic.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”