Interest rate derivatives marketing for corporate clients
Hi everyone,
Have an interview set for an analyst position in this role. Just wanted to get all your valuable insights on this role, how it's valued, if it falls under i-banking of sales/trading, exit opps etc etc. I'm assuming it's front office? the firm is a top 10 BB! appreciate any and all advice. thanks!
my shop it falls under IBD, good gig. if you want to be a banker id assume its looked down on since its more Cap Mkts than anything but I view it as a good role from the trading desk & yes its FO
A friend of mine does this at Wells (started at Wachovia 5 years ago and is now an associate). He likes it, definitely a good gig. He covers all of the Southeast and does a fair amount of travel, but I doubt that comes into play at the analyst level.
Interested in this as well…
Can you provide a description of what you’d be doing as an analyst?
Although i was in FX corp marketing for a few years, i sat next to the rates sales guys the entire time. Could probably lend some color to this.
As an analyst a majority of your first 6 months is learning how all the systems work, how to price stuff, how to get adjustments from the traders, how to book trades and generally learning the business. You also will be spending alot of time doing pitchbooks, updating pricing on stuff (vanilla swaps, caps floors) corporates are generally pretty vanilla with their trades because if they are public they generally adhere to FAS133 hedge accounting standards in order to keep the MtM of their hedges from flowing thru the income statement. As you progress you obviously start talking to clients more and more as you back up the senior guys who will be on the road alot more doing the selling. Just a quick intro, let me know if there is anything else i can answer.
Not sure if you're still in FX sales but I would like to know if the same stuff you said about IRD hold for FX derivatives?
Great, thanks for all the advice.
OIS thanks for the insight. do you happen to know if for the interview they'll focus more on technicals (pricing swaps, swaptions etc) or mostly behavioral? i dont come from a finance background so hopefully i wont get grilled on it too much
My intiuition would be that most of the questions would be fit related, you might get a few basic option questions and fixed income questions i.e what is duration, convexity, price/yield relationship. But i would doubt that they delve into the technicalities. As an analyst they dont expect you to be a IRD whiz coming out of college, but if you understand the basics of fixed income and derivatives you should be fine
So I am still confused about this role - It is neither sales or trading but within Capital Markets, specifically DCM right? The role is basically to assist corporations in issuing interest rate/fixed income derivatives products rather than IG or HY debt?
I spent a summer at a MM in this role, falling within sales & trading. It's different from DCM.
Most of the focus is marketing different interest rate derivatives to hedge out any type of interest rate exposure a corporate might have. For example, a company may have a floating rate loan that they'd like to swap out to pay fixed instead.
Nearly identical for FX sales - marketing often to the same corporate clients as the corp interest rate guys. Both are pure sales roles, however IRD is fueled by bankers and the continual churn of loan closings they pump out. Example - Typical corporate bank loan is floating, if they want it fixed, the banker wheels in the IRD sales rep. FX is more salesy, there isnt a pipeline of credit closings waiting for a swap to be bolted on.
Goldman has some derivs groups that are listed under "banking" on the site, always thought that was interesting. Sounds like this might be similar. Would definitely be front office I would think. Could learn a lot and make for a great starting point.
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