Should I go for Equity Research or Risk?
I just got an offer as a Equity Research Analyst in a brokerage firm. The brokerage firm is a famous one which is the largest in my home country. The position will cover a specific sector and assist in senior analyst in writing reports.
Also I got another offer as an Risk Analyst in a proprietary trading firm. I will monitor the risk of the portfolios.
I'm interested in trading and I hope to switch to investment banking in the future if I could.
Does anyone know the demand for equity research and Risk in the investment banking industry? and which of the path has a better opportunity in the industry?
Thanks so much!
Equity research
Equity research is FO, risk is BO. If your ultimate goal is IBD, you can always do ER, get into a good MBA program and enter IBD as an associate
Please just post once
Also, do a search
The other poster is right, Risk is BO or at best MO. In trading, market risk is probably gonna be more interesting than credit risk, unsure what your role is in there. Equity research is definitely FO and you would have a better chance at IB with that on your resume.
Actually there are FO risk positions as well - and they're quite interesting and lucrative.
I'm curious, which specific roles are you referring to? I am interested in market risk, but not sure which are the "better" roles to take (at least at a BB).
JPM IB Risk would qualify as FO from what I've heard
But on topic go with ER on this one
IB Risk vs. Investment Research for Sophomore Summer at BB (Originally Posted: 01/13/2012)
Which is easier to get into? And which looks better for junior year IBD recruiting?
risk is much easier.
Do you think I can spin it in a way that makes it look valuable when I go through junior recruiting?
depending on what the "propriety trading firm"'s strategy is, risk could either be FO or BO.
If the firm is a market maker, risk belongs to MO or BO, because your job would just be to monitor the risk at a certain point in time. If the firm is more of an investor and take directional risk, a risk analyst could be either FO (portfolio construction from a risk perspective) or BO (risk monitoring).
I am a research analyst in asset management and we consider our investment risk professionals within the front office investment organization, and they are respected and paid accordingly. From an investor's perspective, it is impossible to construct a portfolio without risk analysis, so investment risk professionals are crucial part of the actual portfolio management process.
There is actually a pretty good survey and you can see they are comped pretty well, actually about the same level I am compensated as a research analyst on the buyside.
http://www.risktalent.com/download_files/salary_surveys/2010_assetmngt…
Thank you very much for all of your reply!
Let me explain my roles of the 2 job.
For the Equity Research Analyst, I will cover the real estate sector. It seems that the job will be to write reports everyday if I can get promoted in the future. It is to recommend buy or sell of stocks to clients.
For Risk Analyst, the position will be to monitor risk in a portfolio. It is a mix of investment strategy recommendation and controlling function (to ensure the calculation of return goes well and to monitor indicators like VaR). My team will consist of portfolio managers and risk analyst. The risk analyst will make sure the number of P/L be correct, volatility of the portfolio won't be too high, e.t.c.
Before I am more inclined to Risk Analyst because it seems that equity research have to do lots of writing (but personally I don't prefer to write too much) and risk analyst is more quantitative and sounds more interesting. I don't know if I'm wrong to think in this way...
Actually I would like to be a portfolio manager in the future if I got chance (whether in investment banking or not) Should risk or ER give me a higher chance to get into be a portfolio manager?
That's interesting that risk can be considered FO, but from where I'm working it is not considered as such. The risk group doesn't have any client exposure or interaction. But perhaps for smaller groups that may be the case, I could be wrong.
IB doesn't have portfolio managers. If your goal is to be in something akin to asset management or PWM, you should probably look for analyst positions there. It looks like that risk position is a BO monitoring type role that is reactive, not active.
Aaron Brown have some posts on quantnet site about risk career, take a look at those posts.
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