Equity Derivs vs Convertibles - Exit Opps into Global Macro?

Hi I was wondering if anyone could shed some light on which of these (equity derivs or convertibles trading) would provide a better exit opportunity into the buyside, specifically global macro HFs??

 

If you're looking to exit into global macro focused HFs, equity derivatives is the way to go since you'll be dealing a lot more with the capital markets in equity derivatives compared to convertibles. My 2 cents

Still I Rise
 
maktec5:
If you're looking to exit into global macro focused HFs, equity derivatives is the way to go since you'll be dealing a lot more with the capital markets in equity derivatives compared to convertibles. My 2 cents

Hi matek, I don't know too much about convertibles trading - would you mind elaborating on your post, specifically, why convertibles don't deal as much with the capital markets as do equity derivs?

 
dfall:
maktec5:
If you're looking to exit into global macro focused HFs, equity derivatives is the way to go since you'll be dealing a lot more with the capital markets in equity derivatives compared to convertibles. My 2 cents

Hi matek, I don't know too much about convertibles trading - would you mind elaborating on your post, specifically, why convertibles don't deal as much with the capital markets as do equity derivs?

I have no idea what you mean by those in equity derivatives "deal a lot more with the capital markets" compared to convertibles... Anyway, if you're looking to do Global Macro I'd say equity derivatives because it is a lot less about equity trading, much more about vol. If you know how to trade volatility and vol products, the applications to FX/Rates/Commodities etc you'll be able to learn.

Jack: They’re all former investment bankers who were laid off from that economic crisis that Nancy Pelosi caused. They have zero real world skills, but God they work hard. -30 Rock
 
Revsly:
dfall:
maktec5:
If you're looking to exit into global macro focused HFs, equity derivatives is the way to go since you'll be dealing a lot more with the capital markets in equity derivatives compared to convertibles. My 2 cents

Hi matek, I don't know too much about convertibles trading - would you mind elaborating on your post, specifically, why convertibles don't deal as much with the capital markets as do equity derivs?

I have no idea what you mean by those in equity derivatives "deal a lot more with the capital markets" compared to convertibles... Anyway, if you're looking to do Global Macro I'd say equity derivatives because it is a lot less about equity trading, much more about vol. If you know how to trade volatility and vol products, the applications to FX/Rates/Commodities etc you'll be able to learn.

Thanks Revsly. How would you view the exit opportunities for convertibles on a stand-alone basis, i.e., would convertibles trading still provide a good exit opportunity into global macro??

 
Best Response

Equity derivatives is a good choice- certainly within equities. There's some complicated strategies out there, and if you can observe something that the markets are overlooking and hand the idea off to the traders or to a client who's looking for a less expensive way to place a bet, you're adding a lot of value.

That said, I think there's better places to wind up if they pay just as well- particularly if there's a way for you to work for the CRO of Equities or Fixed Income. Their job is to worry all day long about macro-type things, and make sure the CEO/CFO can see them coming.

If you hoard cash like crazy, you won't need to join a global macro hedge fund- instead, you can open a global macro hedge fund- or perhaps a prop shop if you're a crazy saver. The CRO at your firm will probably sit on the trading floor- you'll see and hear how these trades go down, and most importantly, you'll be trained to think and worry about macro fundamental stuff that the maket makers aren't thinking about.

Prestige is only helpful if you need to worry about raising capital. If you're a good saver and you come from a family of savers, you'll eventually be able to open your own prop shop or at least hedge fund- what you really need is competence on the fundamental macro level. If you fall into that situation, you want to be hanging out and going over ideas with the risk managers almost as much as you do the traders and sales guys.

 

Minus ut qui dicta eaque. Laudantium perspiciatis cum commodi alias aut voluptas. Quae voluptatem aliquid eum debitis.

I used to do Asia-Pacific PE (kind of like FoF). Now I do something else but happy to try and answer questions on that stuff.

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...”