S&T Exit Opps

Based on the most helpful WSO content, here’s a breakdown of your questions regarding S&T exit opportunities:

1. Conventional Exit Opportunities for S&T

• Asset Management (AM): Transitioning to firms like BlackRock or Fidelity is a common path, especially for those with strong client relationships and market knowledge.
• Hedge Funds (HF): Particularly for those in trading roles, moving to a hedge fund is a popular exit, especially from desks like distressed debt, commodities, or macro trading.
• Consulting or Corporate Roles: An MBA can facilitate a pivot into consulting (e.g., MBB firms) or executive roles in large corporations.
• Quantitative Roles: Sales and trading professionals with programming or quantitative skills can transition into roles like financial engineering, structuring, or quantitative research.

2. How Specific Are Exit Opportunities Depending on Desk/Team?

• Exit opportunities are highly desk-dependent. For example:
  • Macro Desks (FX, Rates, Emerging Markets): Skills here are transferable to buy-side macro PM roles.
  • Distressed Debt or Commodities Desks: These desks are often seen as having the best exit opportunities into hedge funds or private equity.
  • Equities Desks: While equities have seen growth, roles like cash equities are more relationship-driven and may offer limited technical skill development, which can impact exit options.

3. Impact of Sales vs. Trading on Exit Opportunities

• Sales Roles: These are more relationship-driven and can lead to roles in asset management, corporate treasury, or consulting. However, they may not be as technical, which could limit certain exits like hedge funds or quant roles.
• Trading Roles: These are more technical and market-focused, making them better suited for exits into hedge funds, proprietary trading firms, or buy-side trading roles.

4. Best Desks for General or Specific Exit Opportunities

• General Exit Opportunities: Desks like distressed debt, commodities, and macro trading are often highlighted as having the best overall exit options.
• Specific Exit Opportunities:
  • Hedge Funds: Macro trading, distressed debt, and commodities desks are ideal.
  • Asset Management: Fixed income or equities desks with strong client exposure.
  • Quantitative Roles: Electronic trading or desks with a focus on financial engineering.

5. View on the Industry Shrinking Due to Technology

• The S&T industry has been impacted by technology, with roles like cash equities being phased out due to automation. However, this has also created opportunities in areas like electronic trading, algorithmic trading, and quantitative research. Sales desks have become more technical, with programming skills (e.g., VBA) becoming increasingly valuable.

In summary, while the industry is evolving, there are still strong exit opportunities for those in S&T, especially if you align your desk choice with your long-term career goals.

Sources: https://www.wallstreetoasis.com/forum/trading/sales-in-st-dead-end-career-path-in-2020?customgpt=1, Exit opps for S&T (More focusing on sales), HELP: The Future of the S&T Job Market and Selecting the Right Desk, Best Desks for Sell-Side Trader --> Buy-Side Macro PM, Feel Trapped, Exit Opps From Sell-Side ER?