Hi All,
I realize each bank has an ALM desk to manage the cash position, liquidity risk etc to achieve its objective through holding the optimum combination of asset&liability. The main products on ALM Desk are Money Market instruments as Time Deposits, Loans, CDs etc.
Does anyone in this top-tier forum could kindly share with me:
1) The performance measurement on ALM Desk? driven by P&L? I know it's not a Market-Making Desk... so really puzzled about if it is a real trading desk
2) What kind of career could I have if I start as an Analyst at ALM Desk on the trading floor? My goal is to trade on a market-making desk, range from IRD, FX Spot/Option, Various FI Securities, even repo.
3) I realize more than 3 banks' ALM Desk and repo/Securities Lending Desk are together (in same trading section) Can someone share some insight here??
Many thanks in advance!! I will really appreciate and look into any idea shared below, trying to interact with my thoughts then
- BChen.
It's definitely less of a risk-taking space since the London Whale incident. Can't really help you beyond that.
ALM is a great place to start, since it's, really, the indispensable heart of any bank. As to whether it's a "real trading desk", why not? Its metric may not necessarily be pure PNL, but that's not a big deal.
If you work hard, you can go from an ALM desk to all sorts of other things.
In general, repo/sec lending, treasury, ALM and all such bits can be in a similar area, but it would vary and depend on a few factors.
Thank you so much for sharing Martinghoul.
TRUE. ALM sounds a great place to start now because it does so much for funding other desks.
Do you mind sharing more of your understanding on individual performance measurement? BC a group share the pnl... so what's the key?
Well, as is always the case for juniors, it's mostly discretionary. Your boss will evaluate your performance and remunerate you according to their subjective measure of your usefulness.
Haha
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