TC: MBS repo trading

Looking at a role as a repo trader at a MBS hedge fund. The fund is located in a second rate city (FL), $300-400 AUM, ~8 traders/ investment team, and salary of for the role is roughly 100k before bonus for a junior trader. Curious about upward TC growth.

This would be a lateral move for me coming from physical commodity trading. Given that I don’t have connections in the space to bounce ideas off of I’m curious to know how the career comp trajectory looks on this side of the business at the analyst, associate, VP , and MD level. Also curious how this compares to sell side firms trading the same products.

If we can also discuss how the TC is broken down(salary, bonus, and carry) that would be helpful as well.

Thanks

 
Most Helpful

Repo traders are never paid as much as risktakers as it's primarily an execution trading role. There isn't a concept of analyst->associate->vp->md on the buyside so that part of your question isn't applicable. I would expect ~20-50% bonus on top of your base and for the role to cap out around 250k-300k comp as long as you stay in a repo trading role. Perhaps if the firm grows and you move more into managing counterparty relationships/liquidity across the business as opposed to directly trading there's more upside there.

 

Thank you for the Input. I’m curious to get your take on this: Given that the nature of this role is “a high touch execution trading role” would it be something to stay away from in the event that I wanted to pursue a credit HF (non repo) in the future?

My opinion is that this would relevant experience but coming from the commodity side I’m at an information disadvantage.

 

Manage financing for levered positions in fixed income cash instruments (bonds/mortgages/loans). Industry is not well automated so it's a high touch execution job that relies on street relationships. 

 

Modi dolore optio quo deleniti optio officia. Nostrum non aliquid placeat dolorem qui. Ut enim distinctio quibusdam aut magnam. Qui rem qui porro voluptatem animi. Neque numquam architecto facere praesentium iure.

Consequatur dolorum eaque provident. Deserunt consequuntur officiis qui voluptas iure mollitia. Et nulla inventore fugit qui. Tenetur expedita omnis quia impedit deleniti ex.

Career Advancement Opportunities

May 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Citadel Investment Group 96.8%
  • Magnetar Capital 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

May 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

May 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Magnetar Capital 95.8%
  • Citadel Investment Group 94.8%

Total Avg Compensation

May 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (23) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (251) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
GameTheory's picture
GameTheory
98.9
8
kanon's picture
kanon
98.9
9
numi's picture
numi
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”