Best Fixed Income Desk

For someone with a quantitative background like yours, here's the breakdown based on the most helpful WSO content:

Best Fixed Income Desks for Quantitative Profiles

1. Interest Rate (IR) Options and Swaps Desks:

   • These desks are highly quantitative and align well with your Math and CS background.
   • IR Options, in particular, involve complex modeling and pricing, making them a great fit for someone with strong quantitative skills.
   • Swaps desks are also a solid choice, especially since you already have experience there, which could give you an edge.

2. Structured Products:

   • These desks often deal with bespoke, complex instruments that require advanced quantitative skills for pricing and risk management.

3. Credit Derivatives:

   • While not as electronic trading-proof as IR products, credit derivatives desks can still be a good fit for quants due to the modeling and analytics involved.

Best Desks for Exits to Market Makers or Buy-Side

• IR Options and Swaps are excellent for exits to market makers like Citadel Securities or buy-side firms. These desks provide exposure to products and strategies that are highly relevant to market-making and quantitative trading.
• Macro Rates Desks: These desks are favored for exits to macro hedge funds, as they provide a strong foundation in understanding global interest rate movements and macroeconomic factors.

Products Moving Toward Electronic Trading

• FX and Fixed Income Swaps: These are increasingly being traded electronically, especially for standardized contracts.
• Government Bonds and Futures: These products are already heavily electronic.
• STIR (Short-Term Interest Rate) Products: These are also moving toward electronic platforms.

Compensation

• IR Options desks typically offer the highest compensation within Fixed Income due to the complexity and profitability of the products.
• Swaps desks also rank high in compensation, especially for those who can handle large, complex trades.

Given your quantitative background and interest in Fixed Income, IR Options and Swaps would be the best desks to target for both skill alignment and future opportunities.

Sources: Best internships for Quant Trading?, Q&A: BB Fixed Income Trader, 2nd Year Analyst, Insights on Fixed Income Trading, S&T Summer Analyst Lateral to IB FT?, Q&A: BB Fixed Income Trader, 2nd Year Analyst