Best S&T Groups at Baird?
Anyone know what the best S&T groups are at Baird in their Milwaukee and New York offices. I also haven't been able to find much info on MM S&T in general, so more insight on the status of the MM S&T industry would be super helpful as-well.
Not sure, but from my experience you dont want to be on the sales side of S&T at a shop like that.
It seems like a brutal job.
Just curious why so? Is it much harder to build up a client book at a MM than BB?
Yes, exactly.
In my market (Loans/HY credit) we trade with the BBs for relationship reasons. I want that allocation on the hot new issue and if i'm bringing you lots of revenue on the secondary front im more likely to get it. There are other things that go into it (mostly having an open line for mkt color - goes both ways).
At MM unless you have a really good niche most bigger buyside shops wont even open a line with you. And if you are even open the only reason you get a trade is you are the only one providing liquidity or we are picking you off.
You spend an absurd amount of time sending IBs/making phone calls that are deferred or never picked up. It does not sound fun
bump
If you end up in equity sales, I’m pretty sure Baird does very well in the small/mid cap space.
Baird does well in munis. They have a nice niche there and underwrite a lot of smaller deals. Munis are generally a very niche market with so many credits who all do deals of various sizes that it is does not make sense for the BBs to try to be involved in everything. Also there is wider bid ask so you can make money using less balance sheet. The MM space in S&T is set up to do 2 things.
With the direction bid/ask is going across products and consolidation on the buyside I think a BB is where you want to be, but the right seat at an MM can be lucrative.
Hey - how do you feel about Munis as an asset class? I've heard both good and bad things. Generally that they're niche and that can be good and bad. Also I heard comp is wayyyy less. Is that true? I'll be at a BB in Munis doing IG/HY trading.. thank you!
I don't think comp is way less, but I think if looked at the amount of revenue that banks generate in munis its not as much as other products. The trade sizes tend to be smaller and you can only make up for that so much in bid/ask. You can't short munis so it really is a buy for a dollar and sell for 2 market, its very demand/client flows driven. If one of the major mutual funds is selling for whatever reason you better hope there is enough bank/insurance demand to meet it otherwise the market is going wider, and that has nothing to do with fundamentals of the sectors or general market tone. In other asset classes things tend to be correlated, in munis not so much. Ex- Stocks open weak on some news, and all sectors of credit are now 3-5 wider, munis could be 3-5 tighter (flight to quality) or 10 wider for some other reason that nobody would have thought. Also hedging is spread/rate risk seems impossible there really is no good way to do it. All that being said I think its going to be harder to replace people but if I knew the future or automation I would be in tech or at a VC trying figure out how to make it happen or invest with people who do.
Other solid MM S&T players are Jefferies, Wells, Macquarie, BMO, and RBC - so look into those as well if you haven't. They all have an area that they do pretty well in, and much better places to be at than Baird.
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