Ideal product type for non-quants

Ok, just curious what other people think is the ideal product type for non-quants-- complex enough that the market isn't a commodity, that there are some barriers to trade the product, but simple enough that you can be a model user, not a modeler, and still excel in the field.

I think making markets or trading in stocks and commodities is just high frequency video gaming, but I've never done it. I've traded vanilla options on equities and commodities, which is definitely fairly interesting. However, vanilla options have become much more liquid and commodified over the last 5-10 years, and quants are driving a lot of the arbitrage and even market-making strategies now. Fewer trader-brains are needed on the front end.

Anybody want to chime in? Anybody know how debt and debt options trade? Convertibles? Credit derivatives? etc. I'm really curious about what the most profitable and complex product you can trade is without being a quant-jock.

 

The liquid exchange stuff (FX, equities) are more and more on the systematic side (ie, quants). The more complex OTC stuff (equities, commodities, EM, credit and rates) also being taken over by quants.

Less complex, I can think of plain vanilla rates and HY & flow credit.

What I see more and more are the traders/quants doing the fancy stuff, with quals doing the client facing bit. The best opportunities are for those who can navigate both ends, that is, the 7-figure sales engineers who understand the quant but have superb client facing skills.

 

Ipsam minus minima fugit nam autem consequuntur. Et dolore voluptatum ipsam consectetur error sed. Est et molestiae quia.

Career Advancement Opportunities

April 2024 Investment Banking

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

Overall Employee Satisfaction

April 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

April 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

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $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
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
kanon's picture
kanon
98.9
6
GameTheory's picture
GameTheory
98.9
7
CompBanker's picture
CompBanker
98.9
8
dosk17's picture
dosk17
98.9
9
numi's picture
numi
98.8
10
Kenny_Powers_CFA's picture
Kenny_Powers_CFA
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...”