Funding Desks

Hmm, are you talking about the guys sitting in the banks' treasury that manage the repo/collateral books and manage the banks cash? I know that at the Big5 banks in Canada, they don't really have specific recruitment cycles for these types of roles. They just fill the spots internally from the front office (believe it or not, a lot of people are interested because of the low stress and more stability).

manbearpig -- correct me if i'm wrong but you're a consultant at deloitte who has never worked on a trading floor, correct? can i ask why you're providing inaccurate "insight" into the industry?

if you're asking about the repo desk, they recruit with the standard analyst/associate program. anyone who knows anything about markets will tell you most markets are about rates and most of rates is about repo. i myself have never worked repo in any fashion but the guys who really know that market make a killing on the rest of the curve. "ideal path" for a tsy trader is repo -> bills/2yr->5yr->10yr->bond/retire.

hate to contradict manbearpig, but you don't see a lot of established guys move on to repo. most repo traders are either lifers or jr guys who plan to move on after 1-2 years.

^You don't need to be such a tool. As far as I know, I'm not trying to give any inaccurate "insight" into the industry. Just sharing my experience. When I said treasury, I meant the 'Corporate Treasury' function of the bank. This function has cash managers as well as traders who manage the bank's repo book, which is not the same as the repo desk you're referring to (within the dealer). FYI, the bank also engages in repo/reverse repo transactions with its dealer , as well as with the street. I.e. RBC bank's Corporate Treasury engages in repos and reverse repos with RBC DS (the dealer). I've personally met some of these traders, and they have come from trading positions with the dealer. For these positions, based on the information I've been given by my clients, they don't have analyst/associate programs. They fill internally. So maybe my clients were lying, or I'm an idiot and didn't understand what was going on during the engagement. After all, us deloitte consultants aren't known for our intelligence...

Worked on a funding desk. As explained both repo/money markets is apart of the usual rotational programs. Treasury depends, each bank runs their treasury area a bit diff, certain places give them more power than others. So at some of the BB treasury may be a place for rotational others they may hire right into it.

Back in the day, repo guys were kings most of the guys are back from the 80s and are still around, so jr guys usually will find very hard to break in. Pre-2008 repo/treasury was overlooked as when MBS/exotics are printing crazy money no one cares about solvency or what it takes to fund the prop desks. Then in 2008, some of these places saved their banks, same thing has happened last couple years as I would say funding and repo have come into highlight in these environments. Though at 0% rates its a tough market for any funding desk.

Lastly while not always true, I do think most rates or guys who trade 2vs5, or 10s like bearflatten has mentioned now today require alot more math and techncial skills than traditionally repo traders did, so making the aking the jump from repo to the path mentioned may be a bit more difficult today.

Thanks for the responses, that's exactly what I was referring to MBP and marcellus. I'm guessing short-end rates s&t is where most of these guys come from, right?

Recruit from the normal S&T pool at my bank

Goodbread- I can add some color to your question, as I work in the ops side of funding (Top BB).

Both repo desk and treasury funding are not overly difficult to break into, openings just are unheard of. They are often filled before the job is posted online. There is also an opportunity to move into these roles if you impress the right people.

P.m me if you have more questions.

How is a repo trading desk different from securities lending?

I've sat next to a guy on the funding desk (note there was only one for the bank) and my understanding was that he pulled money from lenders and from the bank's treasury. The funding desk isn't really a trading position from my understanding.

it is not, it is also called Liquidity and capital management. Most likely provide funding for the bank, through repo/resales..Fed fund lending...etc. Agree with this one, less intense, mediocre bonus but definitely a sweet job if you are not the alpha type.

The above sounds great to me. Nothing to do with alpha/beta whatever. I want to trade something macro, I'll worry about the money later.

Marcellus,

How much window dressing is done by these desks at quarter/year end? What exactly would this entail (for example, what sort of positions would these guys take to make the books "dressed" well)