Hybrid Securities and structured products

try the trading forum

not trading, part of a structured product that is on the banking side - it's not traded, its set up for corporates to pull higher yield.

"its set up for corporates to pull higher yield."

you've just described almost every structured product. can you be more specific about what specific product you are thinking about? even tax arb stuff is handled on trading desks.

not done on a trading desk because it isn't traded - it is issued as a way to make greater return than an equity linked instrument but have the tax protection of a debt instrument. It's kind of a bespoke structured product if that makes sense.

Could you also be talking Hybrid mortgage product?

"Similar to convertible bond - may be a hybrid mortgage security - but that just sounds awkward. "

so I take it you don't actually know what the structure is?

And again, why do you think this stuff wouldn't be traded?

because it's completely done through issuance - no trading was mentioned when I discussed the role with the VP.

step back. what is the actual structure under consideration?

And maybe you'd be working on a banking desk that puts these together. there is a trading desk somewhere managing the risk, but you might not interact with them.

it is most definitely a traded product. I dont know why you'd be arguing this point especially with a guy who has proven to know the business time and time again. here is a job description:

Associate, Hybrid Capital Trading in New York, NY to manage a relative value credit trading ledger for the Hybrid Capital business. Requires Master's degree in Business Administration, Finance, Economics or related field or equivalent plus 1 year of experience trading derivatives and cash instruments.

Just because YOU don't do the trading doesn't mean it isn't traded.

Here's the thing... hybrid securities and structured products could mean a lot of different things depending on where you work.

The term "structured products" sometimes doesn't translate equally across different places. For example the structured products team at Barclays or Nuveen (e.g. ETF's) could have a different scope/function and generally mean something different than the structured products team at Goldman Sachs.

From what I can gather, the general scope of a banker's role in this area is one of due diligence on the issuance. I've never understood the role to be very quantitive. The gist is that you work with regulatory and legal in order to properly define the scope and terms of the product features (e.g. is it going to be issued in tranches? will it be linked to an equity, a commodity, a fixed income product or a broader index?, how will it be traded? etc.) In this regard, the work can become complex as the next generation of structured products can be much more sophisticated than the previous etc.

Jimbo, however is ultimately right. Once these products are issued, ALL hybrid securities and structured products will eventually be traded somewhere. The whole point is that they'll ultimately be offered to a retail market, no?

Finally, as far as hours... why do you care? If it's going to be a first job out of college, be prepared to work your tail off.

What amazes me about you kids today is the emphasize on the $$, the hours and the lifestyle.

I feel your generation of undergrads looks at things backwards. You first consider $$ and prestige and if it's not there, you don't even consider it.

Instead what you should do is seek a career in something that interests you period. Be it finance, banking, law etc. Next, get the best job you can and do your best where ever you are. If you do these things right, the $$ and prestige follows naturally.

annd aadpepsi nails it!