Credit vs Equity pods at MMs
Know this is a broad question, just curious if anyone knows the high-level or more granular differences in culture, comp, outcomes, etc. between L/S equity and L/S credit pods at your big MMs.
Know this is a broad question, just curious if anyone knows the high-level or more granular differences in culture, comp, outcomes, etc. between L/S equity and L/S credit pods at your big MMs.
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Career Resources
Based on the most helpful WSO content, there are indeed differences between L/S equity and L/S credit pods at big MMs.
In terms of culture, it can vary widely depending on the specific firm and team. However, in general, L/S equity tends to involve more research and analysis of company fundamentals, while L/S credit may involve more analysis of financial structures and debt covenants.
As for compensation, it's mentioned that the economics are likely going to be different across the board. In a pod shop, analysts/associates might get paid a percentage of the PnL that their book makes, completely dictated by the PM.
In terms of outcomes, it's been noted that equity L/S can have more mispricing opportunities, and if you're good, you might have a better sharpe, which means less risk for the same level of return. On the other hand, credit L/S might involve less stress and easier money.
Remember, these are general observations and the actual experience can vary greatly depending on a multitude of factors.
Sources: L/S vs LO from a non-monetary perspective, https://www.wallstreetoasis.com/forum/private-equity/then-and-now-compbanker?customgpt=1, Why is everyone obsessed with equity L/S, How do top credit shops compare to MM/LMM buyout?
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