Is equities the place to be in asset management?
In terms of total compensation, I was wondering whether equities is the place to be in asset management? I am hearing about a lot of openings lately in the leveraged finance (high yield/leveraged loan space), but shouldn't such a market have lower fees and lower AUM?
Subjective. Fees can be higher or equal in HY bonds. AUM/head is what matters and it can also be higher or equal but is often slightly lower.
Anecdotal so take with a pinch of salt but HY/LL (and FI in general) tend to have higher fees, higher AUM and PMs outperform their benchmarks pretty regularly. But you'll rarely have blowout and extreme right tail years as in equities.
One other point thats often overlooked is in equities you largely have one KPI - returns (Sharpe). In FI you can play with ratings, duration, curves, capital structure which adds complexity and multiple ways to measure performance which is easy to sell to clients.
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