Fixed Income Sales

Hi guys,

I've always had a good sense of IBD and have strong networks there, but have seen an opportunity emerge for a first year position in BB Fixed Income Sales.

I was hoping that some of you may shed some light on what the day-to-day activities of sales people in FI are (and not commodities, currencies or equities), both at the junior and senior level, and on what exit opportunities exist.

I would ask bankers from the IBs I've interned at but don't want them to think I'm not committed to IBD so any insights would be appreciated.

Many thanks,

 
Best Response

Concisely, if you're an FI salesperson, your role consists of broadly two elements: 1) to be an effective interface between the client risk-taker and the bank's trading desk, whatever that entails; 2) if you're a good FI salesperson, you could become an expert, either as a generalist, or as a specialist in a particular part of the FI universe; in this case, you could advise, provide trade ideas etc etc.

As a junior, your role would be primarily to facilitate and help out with 1).

 

Ye, like I said, if you're good, you could become an expert of some sort. Most importantly, you build long-term relationships with clients, which is what really matters.

As to exit opps, most commonly, it's a career and retirement on a tropical island is your typical exit. However, some salespeople I know have gone on to trading, some have gone all the way to run banks. Sky's the limit, innit?

 

for a speciic example of a fixd-income salesperson career path - John Mack was a fixed-income salesman at Morgan Stanley for approx 15 years (US Rates - govies, mortgages, swaps)...and then rose to management to become CEO...left to run Credit Suisse First Boston, and then was brought back to run Morgan Stanley again. US rates fixed-income salespeople tend to become very decent global macro strategists, and more than a few migrate over to trade at the hedge funds that they used to cover. Its a great career path, as well as a great jumping off point...with much lower / slower career risk than trading.

At UBS, John Costas also rose from Fixed-Income sales & trading (i can't remember which side he was mostly on) to become head of rates and ultimately CEO (this is before the 2007/08 blowup).

There are many other examples...but fixed-income sales puts you in an incredible position to develop networks with some of the largest risk taking asset manager in the world..as well as help you develop a global-macro view of the world....both ideal tools / skills to become a risk taker in your own right when the combination of your experience and opportunity present themselves.

I am a proprietary Govt Bond Trader...i post my comments on the mkt intraday at twitter...and longer articles on my blog. I've accumulated a lot of educational info in these blogs..so i highly recommend checking them out http://govttrader.blogspot.com
 

Institutional: your clients are institutions, not retail investors.

Fixed Income: bonds, rates, pass-throughs, etc.

Salesman: you sell the aforementioned products. you provide coverage for your institutional clients, giving them research, market color, corporate access, pricing, maybe help structuring trades, and giving them trade ideas.

know yield curve and how it moves across business cycle. how bond/rates markets are tied to equities, etc. good luck.

 

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