Best S&T desks for non-STEM/CS background

For someone with a non-STEM/CS background and an interest in fixed-income products like credit and rates, here’s what you need to know based on the most helpful WSO content:

1. Math Expectations for Traders

• Rates/Macro Trading Desks: While these desks are more quantitative than some others, you don’t need to be a math genius. You should be comfortable with running models, using a calculator, and understanding basic quantitative concepts like Black-Scholes (though it’s not used often). The ability to interpret and act on economic data is more critical than deep mathematical expertise.
• Credit Trading: This is less math-intensive compared to rates. It often involves relative value analysis and understanding credit spreads, which are more about market intuition and fundamental analysis than hardcore math.
• Equities: Fundamental analysis is key here, and it’s less quant-heavy than rates or macro trading. This could be a good fit if you’re less comfortable with math.

2. Technicality of Interviews

• Interviews for trading roles will test your market knowledge, ability to think on your feet, and basic quantitative skills. For rates/macro desks, expect questions on economic indicators, yield curves, and interest rate movements. For credit, you might be asked about credit spreads, bond pricing, and relative value.

3. Sales vs. Trading Exit Opportunities

• Sales: Sales roles are relationship-driven and can lead to managerial positions on the sell-side. They are less technical but require strong interpersonal skills. Exit opportunities to the buy-side are less common compared to trading.
• Trading: Trading roles, especially on macro desks, have better exit opportunities to hedge funds (e.g., global macro funds). The skills you develop in trading—market analysis, risk management, and execution—are highly transferable to the buy-side.

4. Best Desk Fit for You

Based on your background and interests: - Credit (IG/HY): A strong fit for someone with an econ/history background. It’s less quant-heavy and focuses on fundamental analysis and relative value. This desk also offers decent exit opportunities to credit-focused hedge funds. - Rates (STIR, etc.): While more quant-heavy than credit, it’s still manageable if you’re comfortable with basic math and economic concepts. Rates desks are highly macro-focused, aligning well with your interest in global macro hedge funds. - Commodities: This can be a good option if you’re interested in physical markets and supply-demand dynamics. It’s less quant-heavy but requires a strong understanding of the underlying markets. - Equities: Easier to break into compared to fixed income, but the exit opportunities to global macro hedge funds are less aligned with your stated goals.

5. Additional Tips

• If you’re aiming for a global macro hedge fund, prioritize desks that are macro-focused, like rates or credit.
• Consider gaining some technical skills (e.g., VBA or Python) to enhance your profile, as programming knowledge is becoming increasingly valuable even on sales desks.

In summary, Credit and Rates desks seem to be the best fit for your background and goals. They align with your interest in fixed-income products and offer strong exit opportunities to global macro hedge funds.

Sources: S&T Summer Analyst Lateral to IB FT?, HELP: The Future of the S&T Job Market and Selecting the Right Desk, Conversation with an Equities Sales Trader, Best Desks for Sell-Side Trader --> Buy-Side Macro PM, Q&A: MBB, BB S&T+IB, Top MBA, US/Global