Difference between S&T at Bulge Bracket v. Regional Bank?
What are the key differences between Bulge Bracket S&T v. Regional Banks (Key, PNC, BMO)?
Are traders able to take on risk/manage P&L at all arrays of banks or do different ones practice different risk management strategies?
bigd0g111, bummer your thread hasn't had a response yet. Sometimes bots are smarter than humans anyways:
Hope that helps.
Depends on the risk appetite of your bank. Some banks will almost immediate back out the risk (effectively the trading desk will be mostly a price taker). Usually happens if the product is fairly vanilla.
For places with more structured products/esoteric risk, such as the IBs, the risk will have to be warehoused as there is not an obvious 1 to 1 hedge/liquid market. Jobs here are more interesting.
Usually happens? Which flow desk immediately backs out of risk on a trade? There's no way a desk could make money if they made markets in X and hedged with X without charging comms (only allowed in equities).
If you mean something like a swaps desk hedging their duration, that doesn't really count. If they're hedging with Y, then there's the X-Y basis which is very much a risk (e.g., swap spreads, convexity+duration-hedged MBS, Treasury basis, convert bonds hedged with equity/cds)..
At some smaller banks the agency model is pervasive, but they are effectively brokers (e.g., Cantor).
The same as the comparison between selling lemonade from a lemonade stand vs. being Minute Maid.
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