Desks in order of quant-y-ness
Incoming 2022 SA in S&T with an econ/finance background interested in trading. I know a little python but I wouldn't consider myself a very "STEM" person, more macro-oriented. How would you all rank the following desks with respect to how much applied math/stats/cs is used on the trading floor?
- EM Credit
- HY/Distressed Credit
- rates securities
- rates swaps
- G10 FX
- EM FX
- Commodities broadly speaking
convexitymaven, hey, look at the bright side, at least you didn't get a ton of monkey shit thrown at you...here is my best guess on threads that might be helpful:
More suggestions...
I hope those threads give you a bit more insight.
I think this depends on if its the cash or the derivative product.
EM Credit - Corporates aren't quanty, sovereign is quaniier while credit derivative side is quanty(think cds, cds index, options etc)
HY/Distressed Credit - not quanty, not macro either; though could be a interesting space to be in.
rates securities - quanty, the core macro product
rates swaps - quantier than treasuries, again main macro product
G10 FX - cash is less quanty, vol side may be quanty
EM FX - same as above
I went through the placement process not too long ago and ended up choosing a macro derivatives desk. Feel free to PM if you have any questions. Good luck
I take it you chose a CDS index desk? I'm wondering if I should go from linear rates to something more vol-related, thoughts?
Yeah I did - really like that I get to learn both the linear side(CDX, TRS, credit ETFs) and the non-linear (options); what I didn't like about rates is that you specialize quickly, what part of the curve you trade, linear vs non-linear etc.
My list by order of quant to not
rates swaps - linear rate derivs tend to be marginally more quantitative than linear fx derivs
G10 FX (linear ex. spot) - I'd argue G10 is marginally more quanty than EM as many EM risks simply aren't quantifiable and are instead esoteric
EM FX (linear ex. spot)
rates securities
EM Credit - cash side is not quant
HY/Distressed Credit - cash side is not quant. there's modeling/valuation but its not quant.
Commodities broadly speaking - 0 experience here but would say paper is quant, physical is not. both potentially interesting
your background should be fine on any of the above desks - pick one that interests you
Commodities depends on the product. I don't think grain trading is very quanty, but power trading can be basically only math.
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