Any MBS guys laid off yet?
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There was news a few days ago of Nomura shuttering its MBS research group.
Unless you're closing the doors on the firm, there's no hurry to shoot anybody. People are relatively cheap between now and year end. Best to wait and see how things look in a month when everybody comes back from the holidays.
"Cheap?" We are not cattle. Statements like that will make your good analysts bolt in a second if they have the chance, FYI...
That being said, I know that you are a VP, but if you give your analyst the feeling that they are "cheap" until year end, they will leave (under the assumption you run a decent group and they have the opportunity to). Plenty of hedge funds are still actively hiring...
You are cheap compared to everyone else....analysts don't get paid like higher levels.
Don't fool yourself into believing that analysts are not a commodity. Yes, when an analyst moves on the vacuum is felt (predominantly by the remaining analysts who will have to pick up loose projects), but soon enough, they get replaced and things are back to normal.
On the other hand, being cheap is a good thing when it comes to moving to the buyside. It is particularly this cheapness of analysts that makes it close to impossible for senior associates and above to land a buyside job (with the exception of superstar superseniors). From that point of view, being cheap is a good thing :)
Anyway let's not take ourselves to seriously and get abck to eating some banannas:)
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"LIVING THE DREAM 24/7 ON http://THEALLNIGHTER.BLOGSPOT.COM"I hate to break this to you, but you are cheap until year end.
That said, I was referring to mostly permanent professionals, rather than the analysts. It only rarely makes sense to shoot an analyst, simply because an analyst's tenure is by nature temporary. You want to turf an analyst, generally it makes sense just to let him finish his term and deal with the numbers through attrition.
The point is simple economics. Take me, for example. Let's say I cost a buck and a half, base. Are you really going to axe me now in order to save $12.5 grand a month? That's cheap. There's no pressure on you to do anything until November or December. Come year end, I get expensive fast, with a balloon payment that will be in the million and a half range. So it makes sense to kill me off before that payment comes due if you don't want me hanging around next year. But in the meantime, why rush when I carry a relatively modest cost to carry?
That's the way it goes for everyone in this business, and if you don't come to grips with it you are delusional. I've been around long enough to see more than two-thirds of my counterparts carry their possessions out in cardboard boxes when the market turns. I'd advise you never to overestimate your importance to a firm - I certainly try not to.
So when it comes to wholesale layoffs, I stand by my point. There's no hurry in blowing out people now and risk being wrong if the market turns after everyone gets back from the Hamptons. If you're smart, you wait for another two months, pay people their little base salaries, and then decide whether you line them up for the gas chamber in October.
Poolside,
Plenty of hedge funds are also blowing up... As an analyst you are completely dispensable and there are thousands of people who could replace you.
Analysts aren't stupid, we're all well aware we're worth very little compared with the guys we deliver pitchbooks to.
Being cheap doesn't mean we all of a sudden become expense when we move to the next firm, that actually takes a few years for the best of us.
well a lot of the financial guarantors seems to be doing fine.
Know that 2-8 big traders got laid off the RMBS desk at UBS
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