Credit Trader -> HF
Is it possible to move from a credit trading seat say in either distressed or HY to a credit hedge fund or would one have to do a stint as a Desk Analyst or IB?
Trading sounds more enjoyable and seem to get paid better than desk analysts but eventually I’d want to move to the buyside; should I go the desk analyst route instead of trading?
Bump
Bump
Bump. Would love to know more about the Desk Trader role on a credit desk as well.
It is certainly doable, but you just have to accept that the HF seat will likely be in an execution role. Given the importance of fundamentals at these shops, the analysts (behind the PM's of course) are the decision makers.
Spending time as a desk analyst would be the best thing for you. Not only does it open up a world of opportunities, but you'll also be a better trader for it.
When I was in S&T, I spent 6 months or so as a desk analyst before moving to a junior trading seat. That 6 months served as a desk analyst was largely the reason why I could transition into a HY Research role, then ultimately into private credit.
Why execution?
May I ask why private side?
yes. but its not as black and white as that. there is a grey area of luck and timing.
I dont have specific knowledge of HF but can give you anecdotes in credit AM.
1. lev fin BB > junior PM > principal/director PM (execution trader initially but ended up with her own book)
2. audit > EM trader/head of settlements > PM > Head PM (managing several funds and strategies)
3. BB ops > AM ops > desk analyst > desk analyst/execution trade
and need to be intentionally vague about this one
4. trustee ops Vice President > desk analyst > principal PM
If you enjoy trading, get a sell-side seat and never leave. They'll pay you better than what you would get in an execution seat at a HF, and chances are (>80%) you'll be just an execution trader.
If you enjoy analysis, get a desk analyst seat. But I wouldn't advocate staying too long - as you mentioned, they get paid less on sell-side. But should set you up incredibly well to move to the buyside in a research role.
They're really 2 different roles for 2 different types of people, you should really be 1 or the other.
Thanks for the insight. I’d say I’m passionate about trading and enjoy research. My thought about moving to the buyside ( research analyst/PM role) is due to the decline of s&t.
I’d love to stay in the trading seat but I’m not sure what the future comp, industry growth is like for the industry so doing a desk analyst stint would be a hedge for my career.
Any insight into the future of credit trading or the general s&t industry?
Bump.
Could you provide more insight into ghe typical pay progression for a desk trader on a BB?
Not really. But not because I don't want to, but because it varies too much. Your pay will start to directly be linked to your pnl after 2-4 years. So, if you have a great year you'll get paid $1mn+, and if you don't, maybe 100k bonus. It just depends on how you do, how the firm does, and all the politics associated with that.
It's probably more lucrative than 50-60% of buyside jobs, but obviously comes with a lot more volatility and day to day stress.
Why cant a sell side trader in hy or distressed move to a buyside pm role directly? What am I missing?
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