Hi everyone,
I’ve been working for about 4.5 years at a minority-owned broker/dealer on the sales side as a fixed-income broker. I mainly cover public sector municipalities and some asset managers, trading Treasuries, agencies, corporates, CP, and similar products. At my firm, all brokers are generalists and can build their book however they like. While our bread and butter is large public sector clients, we also cover many tier 1-3 asset managers and regularly execute $100–$300M block trades. Overall, we trade around $20B a month, so we have real merit in execution, not just a diversity story (though being a minority-owned firm can help open doors).
I’m curious about how buy-side professionals who work with multiple brokers view regionals and minority-owned firms. What do you see them doing particularly well? Are there common mistakes or pitfalls to avoid?
A little context on me: I’m starting to do well trading with smaller asset managers and have had some luck with a few bigger ones (portfolios of $25–$80B), though trades there are sporadic. I got here through a lot of cold calling and emailing and want to continue improving. I really enjoy client coverage and want to become a top broker at my firm.
I’d love to hear from the buy-side perspective:
- What makes a broker stand out as a top coverage person?
- What do you expect from new coverage when you first meet them?
- How do you view regional or minority-owned broker/dealers compared to larger firms?
- How do top brokers get your attention, and what behaviors or habits do you notice that consistently work?
- Any advice for someone looking to grow their book and reputation?
I can provide more context if needed and appreciate any insight or advice.
Cheers!
Some of the smaller b/ds I work with can be really annoying if they keep showing me things my PMs are not invested in, have not been invested in, and simply don't care on. If I reflect that color, then any good broker or salesperson should make note and stop calling or pinging me on it.
Trust is another factor, if I can trust you to work an order without completely blasting it around the rest of the street, then I am more likely to work with you if you keep my interests in mind.
In a similar vein, show me sizes that I may care about. If I am a large HF/AM I don't really care about tiny lots of bonds especially if you have no prior relationship with me or my team, it is really not worth my time to figure out where to fit 500k in a 50bn+ platform. If I can help you do a favor, you have probably helped me do a favor and that is built up over time doing productive business.
Thanks for the color — I appreciate it.
Couldn’t agree more on the trust piece. At a regional dealer, trust and client rapport are everything, and in many cases, that’s the only way to compete against the primaries.
From your experience, what’s the most effective way for a new broker to break into coverage with a medium or large platform? It can be tough to get actionable information upfront that helps me send targeted, relevant ideas. My approach so far has been to stay in front, provide quality market color, and gradually identify opportunities that may fit — but I know it’s not always a two-way street, and that’s on me to bridge the gap.
Also curious:
HDS or fund filings can be helpful to identify things we are interested in, while staying fresh and providing updates on volatile and rapidly changing situations can be helpful.
I would say some of the smaller b/ds who specialize in certain tickers, sectors, or niche situations can cover a gap the large traditional S&T desks aren't always focused on.
Yes, it can certainly feel like an uphill battle when things don't line up, but the more insightful and accurate you can be, it will be appreciated over time.
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