Quanty/technical desks
Have always had an aptitude for math, but not quite at the level of quant/algorithmic traders etc. Planning on majoring in finance and either minoring in math or double majoring, but still have time to figure that out. I should be able to get into a high semi or target school with my stats, and planning on gunning for a trading desk at a BB. Obviously there's a lot of time before this and much can change, but I was hoping I could get a good grasp of what desks are more technical/quant-focused. So far I've been able to gather that they would be delta1 desks, rates vol, FX vol, and macro credit, but if anyone could help clear this up for me it would be a huge help. How does recruiting for these desks work? Am I applying to these banks for trading in general and finding a desk that best suits me, or would there be more specifications in this process? Also is coding knowledge necessary for these more technical desks? How does compensation vary from these desks to less quanty ones? Also looking for exit opps to HF/Prop shops, and wondering how that varies as well. Ik I just dropped a lot of questions but any and every bit of information helps. Thanks
You will usually apply to the general S&T internship, but some will split up based on role (JPM recruits for trading separately from sales) and some by asset class (MS recruits FICC separately from equities). But regardless of the program, you will generally do some sort of desk placement process where you will “interview” with desks to see which you will end up on or rotate through during the summer. The desks you mentioned (fx vol, rates vol, macro credit, equity derivs) are generally more competitive and will try to recruit STEM majors with a decent background in options and coding. Knowing Python definitely will be important for any of the desks you mentioned. Decent hedge fund exits for all that you mentioned. Perhaps contrary to some opinions, but I would honestly avoid some of the equity derivs desk as they face the highest risk of automation (particularly delta one, single stock and index vol). They are probably safe in the short run, but given your time horizon and wanting to move to a hedge fund, a macro vol desk is likely the better place to be
Would the finance degree even be worth it at that point? Or should i opt for just a math major
Could be useful depending on the school (Wharton, Stern maybe worthwhile), but I would avoid a general business degree like UMich, USC, and Cornell offer as it’s less applicable to quant finance (unless you double major at these schools). A pure math major may be a bit overkill unless you are like a math god, but I would do something like econ+math, applied math, econ/finance + CS/Data Science, or financial engineering/computational finance if the school offers that. I’d recommend a minor in Finance or econ if you decide to go the purely STEM route (take classes like corp finance, fixed income, financial derivatives, macro theory in these minors)
xVA is pretty quanty. Pretty much all the people on the desk at my bank are ex-risk quants and have PhD’s in physics. The MD on the desk also told me they don’t usually take rotating associates as they are useless to them since they don’t have the background or technical knowledge to contribute.
Finance isn't a real major. Physics, math, or comp sci. Even then, you're at a disadvantage. Last I knew is that Citadel recruits from IMO/IOI/IPO. I'm sure that's industry standard by now.
Makes sense for citadel but as far as top BB desks I can’t imagine it’s nearly as competitive no? Obviously probably still gonna want one of those majors but with all the top stem majors going to prop or straight to HF I feel like it’ll be an easier recruiting landscape.
You are right, Citadel and co. has pulled a lot of the top STEM talent away from BB trading desks. Still strong STEM majors going for BB desks, though definitely quite the gap from buy side QTs.
Will boil down the main points - don't major in finance. The desk will teach you the micro/what you need to know. Spend the 4 years doing something technical/challenging/stimulating
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