what to move into in a post mifid world?
Trying to figure out what are the exit opportunities now in a post-MIFID world. I am currently in BB for a few years, but I dont think people will survive in research. Just trying to cover my own end. To be clear, my goal is not to take a 50% paycut obviously and go into IR as an associate lol, but trying to find something reasonable and interesting but mostly, maintain at least some level of income.
so what's reasonable out there? move to IBD (seems impossible), move to corporate (is it worth it?) other options?
Hi chickensoup, check out these threads:
No promises, but maybe one of our professional members will share their wisdom: standardoil Mr. Donaghy TheContrarianSeer
You're welcome.
Yeah is a fair question....is pretty simple - buy-side for less money, or corporate/IR, also likely less money - you’d be surprised, Fortune 500 IR comp isn’t bad - however the day to day work life is meaningfully different obviously, and I would miss the stock/research element of the job...
I know its early, but trading is slow at my firm, large regional one...we trying to put on brave face but I dont know man...you sound pretty bearish about Mifid...
Wouldn't you normally be considering your next move at this point (you said you've been there for a few years)? Most ER assocaites typically move on after 2-3, right?
Yes, perhaps. I’ve been MD level sell side for 15-20 years....have been fortunate to be in the business when comp was very good. So now the decision is to stay and see how bad it is, or try and make a move to buy side/corporate this year before everyone else tries to do the same. If I were to move, would likely be 30-45% downward comp move, but isn’t unrealistic to expect sell side comp to be down 25-35% anyway this year.
I don't have any advice for you but this post is 100% accurate in terms of numbers. Both buyside and sellside will be in turmoil for the near-term but the top 5% will still get rewarded (probably moreso) in the long term.
Yeah is tough call...was likely to retire in next 5 so perhaps may happen a bit earlier lol..
Part of it is quality of life between two - in past was willing to stay sell side due to larger comp but likely can’t make that argument anymore
You think SS comp down 30% this year? Brutal...
I think cash equities revenue will be down 30 So either everyone down 30, or many get whacked to preserve rest of comp pools
JPM comp was down withouth MIFID, and it is a strong shop. (Especially research)
I think some of the commentary is a bit too bearish.
1) Cash equities across the street is not down 30%; more like down 5-10%. Some firms actually had decent cash quarters (like GS in 3Q) in 2017. Some other cash verticals are down more, but cash is relatively stable, low cost and low capital
2) 2018 is shaping up to be a busy year in terms of equity offerings and m&a. Research will be needed to touch both of these. Also, investment banks should have a better year overall in 2018 relative to 2017, which should relieve some cost cutting pressure
3) Corporates are hungry for coverage. As some analysts have left, I’ve noticed more and more corporates paying more attention to the analysts that cover them. I honestly don’t know how this will shake out eventually, but corporate demand for good equity research implies that it will be paid for somehow (maybe through things like enhanced IR firms)
I do expect some attrition - I’ve already seen it. Pay is trending lower, but it has been for 10 years. Some seniors will leave, which will allow some more up and coming juniors to take their place (albeit at a lower ceiling salary).
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