corp derivs sales in Canada - good seat or dead end?

Corporate derivatives sales in Canada can be a nuanced seat, and opinions vary depending on career goals and market dynamics. Here's a breakdown based on the most helpful WSO content:

1. How is corporate derivatives sales viewed?

• Mixed Perception: Corporate derivatives sales often gets labeled as a "dead end" because it straddles the line between markets and private-side roles. It's not technical enough for hedge funds or trading desks, and it's not relationship-driven enough for private-side roles like corporate banking or investment banking.
• Still Relevant: However, this view might be outdated. The role can offer strong client exposure, product knowledge (FX, IRD, commodities), and a solid understanding of risk management. These skills are valuable, especially if you aim to stay in the derivatives space or pivot to related roles.

2. Realistic exits after 3-4 years?

• Structuring: Moving into structuring is a common and logical exit, as the skill set overlaps significantly. You'll need strong technical skills and product knowledge to make this jump.
• Trading/XVA: Transitioning to trading or XVA desks is possible but less common. It often depends on your technical expertise and networking within the firm.
• Lateraling to BB: Moving to a corporate derivatives team at a bulge bracket (BB) bank is achievable, especially if you build a strong track record and relationships with clients. BBs may offer better comp and career progression opportunities.

3. Comp trajectory vs. corporate banking?

• AD/D Level: Compensation at the Associate Director/Director level in corporate derivatives sales is generally competitive with corporate banking. However, the gap may widen at the MD level, where corporate banking MDs often have higher earning potential due to larger deal sizes and bonuses tied to lending.
• Trajectory: Pay in corporate derivatives sales can be more volatile, as it's often tied to market performance and client flow. Corporate banking tends to offer more stability but may lack the upside potential seen in strong derivatives teams.

Final Take:

Corporate derivatives sales in Canada isn't necessarily a "dead end," but its value depends on your long-term goals. If you're aiming for trading, structuring, or BB roles, it can be a stepping stone. However, if you're looking for broader exit options (e.g., private equity, hedge funds), the role might limit you. Focus on building technical expertise and leveraging client relationships to maximize your options.

Sources: Goldman Sachs Corporate Derivatives, Q&A: Equity Derivatives S&T, Is S&T still a good career path?, Canada to NYC Lateral