Rates trading desks ranking

Based on the most helpful WSO content, here’s a breakdown of the top rates trading desks and their distinctions between linear and volatility (vol) products:

Top Rates Trading Desks

1. J.P. Morgan (JPM)

   • Known for its strong presence in both linear and vol products.
   • Their rates desks are highly regarded globally, with a focus on macroeconomic strategies and technical expertise.
   • Vol desks at JPM are particularly strong, offering complex and technical products that are highly sought after by macro funds.

2. Goldman Sachs (GS)

   • Maintains a strong reputation across asset classes, including rates.
   • Their vol desks are considered among the most complex and technical, making them a top choice for those interested in challenging products.
   • Linear desks are also robust, with a focus on global macro strategies.

3. Morgan Stanley (MS)

   • Well-regarded for its rates desks, particularly in linear products.
   • Known for a strong culture and technical expertise, especially in G10 FX and rates.

4. Deutsche Bank (DB)

   • Historically strong in credit and rates trading, particularly in Europe and Asia.
   • Their linear desks are well-regarded, though their vol desks may not be as prominent as JPM or GS.

5. Barclays

   • Strong in European rates trading, with a focus on linear products.
   • Their vol desks are competitive but not as dominant as JPM or GS.

Linear vs. Volatility Products

• Linear Products: These desks focus on instruments like swaps, bonds, and futures. They are more macro-driven and require a deep understanding of interest rate movements and global economic trends.
• Volatility Products: These desks handle options and other derivatives that involve volatility trading. They are more technical and complex, often requiring strong quantitative and coding skills.

Why Choose Volatility Over Linear?

• Volatility desks provide more exit opportunities to macro funds and hedge funds due to the transferable skill set in managing complex products.
• Linear desks are more traditional and macro-focused, offering a solid foundation in rates trading.

If you're aiming for a challenging and technical environment, rates vol desks at JPM and GS are top-tier. For a more macro-driven approach, linear desks at MS, DB, and Barclays are excellent choices.

Sources: https://www.wallstreetoasis.com/forum/trading/what-are-the-top-volatility-trading-desks-at-jpm-gs-and-what-differentiates-them?customgpt=1