Equity exotics vs swaptions trading
I am considering two opportunities at top-tier BB's (think MS/GS/ML) in London. Both are similar entry-level (associate) trading roles. One is at the swaptions desk, the other at the equity exotics desk, and I am trying to make up my mind about what I want to do.
Clearly, the most important decision factors for me are the people (the desks have very, very different cultures) and obviously the asset class. However, I would also like to take into account some other aspects that I have less visibility on, and that I would love to hear your thoughts about: * Would you expect the risk level (career risk and earnings volatility) to be much larger for the swaptions role than for the exotics one? I imagine that this is probably the case, especially because the swaptions traders in this firm are encouraged to take significant prop positions, but I would definitely welcome any additional insights. * Should I expect significant differences in bonus between these two roles (for a similar performance level)? * What would you say are the typical exit opportunities for each role? * Are there any other important points to consider that I'm missing?
Thanks!!
trading swaptions in which currencies? trading euro's are very different from trading sterling.
are both jobs at the same BB or different BB's?
from what little you've mentioned...
"Would you expect the risk level (career risk and earnings volatility) to be much larger for the swaptions role than for the exotics one? I imagine that this is probably the case, especially because the swaptions traders in this firm are encouraged to take significant prop positions, but I would definitely welcome any additional insights. * Should I expect significant differences in bonus between these two roles (for a similar performance level)? * What would you say are the typical exit opportunities for each role? * Are there any other important points to consider that I'm missing? "
1)no 2) yes, going to depend on desk performance and the two are not correlated 3) strangely enough, probably better for equities 4) who knows?
Thx for your 2 cents Jimbo. As always, extremely helpful.
Could you explain a bit more why exit ops should be better for equities?
Also, I don't know for sure what currencies yet. Chances are it's going to be CHF and GBP, but I might have some room to negotiate here. Could you clarify why this is such an important issue? (Apologies for my ignorance :) )
different markets trade differently. you dont really want to be trading usd swaptions in london time. euro's are heavy flow, sterling sees almost no flow and trades much more straight prop, but usually with tight risk limits.
i think there's probably more going on in exotics in general than in a vanilla swaption product.
Thx a lot!
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