Fixed Income Trading Conversion Odds?

Based on the most helpful WSO content and threads, here’s what you need to know about securing a Fixed Income Trading (FICC) role during your summer internship:

1. Making Your Trading Preference Known

• Timing: Communicate your preference for trading as early as possible, ideally during the onboarding process or initial conversations with HR and your assigned mentor. This ensures your interest is on record.
• Networking: Build relationships with traders on the desk you’re targeting. Attend team events, ask insightful questions, and show genuine interest in their work.
• Mentorship: Seek out a mentor within the trading team who can advocate for you when placement decisions are made.

2. Respect for Preferences vs. Headcount-Driven Placement

• Placement can often be headcount-driven, especially in volatile markets or during hiring freezes. However, if you’ve demonstrated strong performance and built relationships with the trading desk, they’re more likely to push for your placement.
• Some desks may prioritize interns who’ve shown a clear passion and aptitude for trading, so your actions during the internship matter significantly.

3. Concrete Actions to Secure a Trading Seat

• Excel in Technical Skills: Showcase your ability to analyze data, understand market trends, and execute trades. Proficiency in Excel, Python, or VBA can set you apart.
• Ask for Projects: Volunteer for tasks that involve pricing, risk analysis, or market commentary. This demonstrates initiative and a hands-on approach.
• Market Knowledge: Stay updated on macroeconomic trends and fixed income markets. Be ready to discuss recent developments and their implications during informal conversations or formal reviews.
• Shadowing: Spend time shadowing traders to understand their workflow and decision-making processes. This also helps you build rapport with the team.

4. Pathways if Trading Isn’t Immediately Available

• Start in Sales: If trading roles are unavailable, starting in a sales role can still provide valuable market exposure and networking opportunities. Many professionals transition from sales to trading later in their careers.
• Middle Office or Risk Roles: Positions in risk management or trade support can also serve as stepping stones. These roles allow you to develop a deep understanding of trading operations and build relationships with traders.
• Lateral Moves: If you don’t secure a trading seat at your current firm, consider lateraling to another firm with open trading positions after gaining some experience.

5. Advice from Experienced Interns

• Be Proactive: Don’t wait for opportunities to come to you. Seek out projects, ask for feedback, and consistently demonstrate your interest in trading.
• Build Relationships: Networking is critical. The more people on the desk who know and respect you, the better your chances of securing a seat.
• Stay Resilient: If things don’t go as planned, don’t get discouraged. Many successful traders didn’t start in their ideal roles but worked their way into them over time.

Final Tip:

Remember, the trading desk values individuals who are curious, quick learners, and can handle pressure. Show them you’re not just interested in trading but that you have the skills and mindset to thrive in the role. Good luck!

Sources: Advice for summer and return offer rate?, S&T Summer Analyst Lateral to IB FT?, The Unfortunate Truth, Q&A: BB Fixed Income Trader, 2nd Year Analyst, Advice for a 21-year-old entering BB S&T?