Advice: Global Macro HF Seat vs S&T
Hi everyone. I have an offer to work for a global macro PM in essentially an anything-goes strategy - ie trade across asset classes as well as derivatives. The PM is well pedigreed (ex- Millennium / Citadel / Bluecrest / Brevan) but this is his own fund.
I also did a summer at a big bank (non BB but big name) on a macro trading desk and have a return there.
Which should I take what is your advice? Thanks!
Based on the most helpful WSO content, here's what you need to consider:
Global Macro HF Seat:
Macro Trading Desk at a Big Bank:
Key Considerations:
Ultimately, weigh the trade-offs between stability and risk, learning opportunities, and alignment with your career aspirations. If possible, seek advice from mentors or professionals who have experience in both environments.
Sources: Global Macro Hedge Fund is Paradise, Q&A: Head of Macro Strategy at Hedge Fund Taking Questions, Q&A: MBB, BB S&T+IB, Top MBA, US/Global, 2nd year S&T to IBD Associate -- ask me about S&T
Congrats, sounds like a great opportunity. I had S&T and MM HF cross-asset macro offers, so it was a similar choice.
Just my experience and I do think the right S&T seat could be great, but I took MM HF and in 1 year I learned more than friends in S&T did in 3. Actually participating in risk-taking on the buy-side is something you rarely get on the sell-side now outside of select desks e.g. STIRs, EMFX etc.
Your choice simplifies to becoming a specialist in your S&T product e.g. Hungary rates curve. Or a cross-asset skillset. I find people's minds to be geared to one or the other as a preference. X-asset was mine but I'd ask yourself how you prefer to come at markets - for some, it's joining the dots, for others, it's knowing the details of how a market moves better than anyone else. At times, I'd remiss at not having 'deep expertise' and having to constantly feel like I was 'behind' on what was happening in a market. So do bear that in mind - the HUF rates trader at the bank will know the flows, positioning, and historical quirks better than you. So you'll rely on seeing how one asset class affects another e.g. credit moves -> equity sector rotation -> rates reprice in USD -> EM gets hit. So it's one asset often traded in a different way. I think x-asset is a steeper learning curve given there's more to learn and it was a tough start, but it was more suited to how I think.
Neither is 'better', just more suitable to you personally.
Hey, could you touch on which sell side desks do risk-taking type work pls? Looking for which desk to go on for my fixed income summer.
all of them do
As above. Flow heavy desks. E.g. DM and EM rates, G10 and EM FX spot, IG and HY credit, D1 equities. Etc. Derivatives desks like rates swaptions, FX options etc can take directional risk but less since it's mostly in the greeks and less via delta 1 (i.e. being long or short bonds).
Hey, I am heading to an EM rates trading desk at a BB (London), do you have any EM-specific advice? Don't see many EM people on here so would be good to know. Thanks for your help in advance
Flow products e.g. EMFX spot or options, EM rates. Something you market-making in frequently. Avoid structured desks e.g. EM SSA.
Or in FI world, IRS trading, STIRS and inflation trading would be top picks.
Reprehenderit autem recusandae ea laboriosam rem et. Officia porro voluptas mollitia tempore. Qui iure voluptatem id.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...