Hi All,
I have a question regarding oil majors vs banks/asset managers. At the moment I am working for a large asset manager and thinking about making the switch into commodities to ultimately become a physical trader. I know the two are slightly different where it takes a long time to become a trader at for example Shell, BP, Glencore etc since you have to learn the ins and outs of the commodity cycle. Whereas at an asset manager/bank youll trade almost right away. I have been trying to find some info about bonus and base salary and by the looks banking seems to pay a lot more (at least in the beginning which is where I am). Does anyone have any idea of what the differences are in pay and roughly what the future may look like? Also starting out in a credit risk position at an oil major would it be possible to make the switch to a hedge fund after a few years?
Thanks!
Hi rebswe, hope I can help. Do any of these links cover what you're looking for:
If we're lucky, the following pros may have something to say: KHI-DTW @Mithat-Ulubay" mgraca
Fingers crossed that one of those helps you.
I think if you want to trade physical commodities, a hedge fund would not be your ideal exit. HF's will most often take positions in the paper market when they want commodities exposure. Ideally you would want a job at one of the trading houses (Glencore, Mercuria, Trafigura, etc.) as they engage in the most interesting physical trading and the comp potential is quite high.
Working at an oil major is probably a decent place to start, and is not a bad career option, however the trading there is really aimed at offloading the company's own production and is not terribly exciting. In addition, the comp levels are just OK, nothing compared to a trading house.
I think in terms of skillset, an O&G company would have higher carryover to working at a trading house as these days IB's don't do too much in the physical space due to regulatory capital hurdles. Not sure what the prospects for lateraling from Credit to Trading would look like at a supermajor though.
Thanks @CorpFinHopeful landing a trader position at one of the trading houses would definitely be a dream but very hard from what I have heard and I am definitely not alone in wanting a job there. Would you know how high (or low) the turnover is at one of the trading houses for a trader role?
Spoke to people about transitioning from credit to trading and got the feeling it would have to be through a trader development program.
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