Exit ops from Valuation/Pricing quant role
(Reposting from HF forum since I got no responses)
I just got an offer for a valuation/pricing role at a BB which employs quants (relevant detail here I think to highlight coding+math ability). It sounds like MO, but sort of the best MO you can get because you're really close to the securities (think stuff like munis, CLO, CMO, RMBS, CMBS, ABS, etc.) and can really learn some good stuff about these markets.
The job search this year has been particularly brutal, especially since I have a really strong educational background (think top 5 UG with STEM double and a 3.9+). So I think I have to go for this role, particularly because I really don't have many other leads, and all the optimism about this year being a rebound year seems to have faded in light of recent fed statements and inflation figures etc etc.
My question is - is this role gonna kill any future hopes I may have? I don't have crazy goals, my goal would just be for me to be able to pursue a path that allows me to be a PM someday within fixed income. I know the most surefire way to get there is to be a trader within a BB and so are BBs generally gonna be receptive to a MO quant guy like me trying to get on their desks? I'm talking about either lateralling internally or externally. How about if I try and go directly to the buyside as a quant? I know there's like a million different quant functions but macro analysts on the buyside generally have exactly the skillset I have, the only difference being that they have a bit of experience under their belt. Just a little concerned about pigeonholing with words like "pricing", "evaluation" "valuation" attached to my resume.
Based on the insights from Wall Street Oasis, transitioning from a valuation/pricing quant role at a bulge bracket (BB) to a portfolio manager (PM) position in fixed income is challenging but feasible. Here are some key points to consider:
Skillset Utilization and Development: Your role in valuation/pricing will indeed allow you to hone your coding and mathematical skills, which are crucial in the quant world. This experience, especially with complex securities like munis, CLOs, CMOs, RMBS, CMBS, and ABS, is valuable. It provides a strong foundation in understanding market dynamics and financial instruments, which are essential skills for a PM in fixed income.
Internal Lateral Moves: BBs often provide opportunities for internal mobility. Given your strong educational background and the quantitative skills you'll develop in your current role, you could position yourself as a candidate for internal trading roles. Success in this transition can depend significantly on networking within the firm, consistently showcasing your analytical capabilities, and aligning yourself with the revenue-generating divisions.
External Opportunities: Moving directly to the buy-side as a quant is another viable path. While the labels "pricing," "valuation," and "evaluation" might seem limiting, they describe a skill set that is highly relevant to many quantitative roles on the buy-side, especially in macro analysis. To avoid being pigeonholed, focus on building a narrative in your resume and interviews that highlights your analytical skills, market knowledge, and any direct investment decision-making experience you gain.
Networking and Continuous Learning: Engage actively with professionals in your desired field, attend industry seminars, and possibly pursue further certifications or courses that align with trading and portfolio management. This not only enhances your skills but also demonstrates your commitment to transitioning into a PM role.
Performance and Visibility: Excel in your current role and seek projects or committees that increase your visibility to the senior management. Performance in high-visibility projects can significantly boost your internal profile for lateral moves.
In summary, while your current role in valuation/pricing is more middle-office, it does not close the doors to a PM role in fixed income. Focus on excelling in your role, leveraging your skills for internal opportunities, and preparing yourself for external roles through continuous learning and networking.
Sources: Q&A: Rates & Macro Research/Strategy - Career Path, Technical Topics, Education, etc., Boutique vs. Bulge Bracket in a Recession, Prop Trading (MM) v.s. BB Sales and Trading, So you want to be a Quant?, Quant Researcher in Quant Funds: Dead-End Career Path?
Alias nam quisquam nihil quia aut recusandae sit perspiciatis. Laboriosam culpa animi tempore eius sed. Deleniti aspernatur neque et et maxime eius possimus. Laborum et deserunt nulla aut reiciendis mollitia voluptates.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...