BB arbitrage group versus Citi S&T
Hey guys,
So I'm trying to decide on two different summer offers right now.
-
Proprietary Index Arbitrage Trading desk at a BB (i.e. DB, BCS)
* It is a prop desk that manages the firm's own capital
* Probably more research oriented/ focus on a strategy
* Worried that the strategy be too specific, not enough exposure to flow/markets
* Less exit opportunities/ full time recruiting opps? -
S&T at Citigroup
*More structured, opportunities to network, rotation at two different desks
* sell side
* introduced to flow/ orders
I also have an ongoing interview with SIG
Any suggestions? Really appreciate it!
I would go with the Arb group. It's a more rare opportunity and gives you potential to earn alot of money. One of my masters profs worked in bond arb at a BB. The guy is retired early 40's and living large.
I understand S&T can be lucrative also but I would much rather be in arb at a BB. Just my opinion.
Arb for sure, that'll give you so much experience, and I'm assuming it's DB, because it's known to have profitable prop desks, not many though
index arb is very differnet from bond arb or other prop desks.
it is a bit system/IT focused, your gear has to be very fast. very low margin/high volume game.
often times you are buying everything spot in S&P 500 basket and simultaneously selling futures on S&P. You take on interest rate risk (which can be hedged out) and retain the dividend risk.
not very fundamental, compared to credit/equity prop. can be sort of pigeon-holed into the equity synthetics sector.
i work at one of the firms you listed. some of index arb prop guys work under prime brokerage unbrella (reason is that by buying everything in S&P or other index you are creating index supply which can be lent out to HF clients who short indices to hedge their long stock picks), some work under equity strategies. you will work a lot with index research folks who predict what stocks will get added to/dropped from S&P500/russell200 etc.
just playing devil's advocate here. not all prop are the same.
Agreed with untitled. Index Arb isn't as exciting as it sounds. Spent a day on one last year and was largely underwhelmed. I'd go with Citi S&T.
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