Is S&T right for me? Offers at DB Credit Trading & >$1bn Buyside Fundamental Credit Fund

Hey guys,

I'm a junior at a target (Ivy) interested in credit. I'm trying to figure out the best way to get to a credit HF. I currently have offers to join DB's structured credit desk as well as as a HY credit analyst at a >$1bn credit fund at a large bank. Obviously 1 is sell-side and 1 is buy-side but the jobs do seem very similar. I would think that the buyside program would be better but there is no formal training program and I was unsure of what type of experience I would have. On the other hand, I genuinely like the people at DB and am told they take a lot of principal risk when trading illiquid products. To me, this means that I would be doing similar jobs, but I may be wrong.

1) Please advise?

I am hesitant to join sell side trading for a few reasons. Sellside trading has obviously changed in recent years. Revenue has dropped and many of types of risk are discouraged. I know some traders who really are not supposed to take directional bets, but this may only be true for more liquid noncredit products

2) Please advise?

3) Does structured credit trading ever use fundamental analysis or it is more market making?

4) How is DB at credit trading?

5) Which would be better learning experience? Which is more marketable experience?

6) I am not sure I want to be career trader. I like the idea of starting my own business eventually. I think buyside credit investing may allow me to get more familiar into business models. Does this make the buy-side role a better choice for me?

Thanks guys! I may be a little confused about what sell side trading desks actually do. Also there may be desks at DB that I just don't know exist.

Comments (5)

Feb 5, 2015

You should take the buyside job. Way more transferrable skillset (vs structured credit), better job security, likely better work environment, etc...

Structured credit does not employ fundamental analysis. It's just financial engineering. It can be lucrative but if they really are taking a lot of principal risk I'd be concerned that they will have to cut it back.

The lack of formal training won't matter because the training you'll get in structured credit won't train you for anything other than structured credit.

Feb 5, 2015

Take the analyst role if you're interested in the buy side.

As the poster before stated, structured credit is largely quantitative in nature. To get break into the buyside, you would either have to land a role at a macro shop, or become a execution style trader.

As for the lack of training- I would just bulk up on my fundamental skills (modeling, etc.) before I arrive. This way you are not overwhelmed when you get to the desk. And dont worry, recruiters in the futuer won't ding you for a lack of training program.

Feb 5, 2015

This is not necessarily true - some HH's will insta-ding you if they don't see 2 years of IBD

Feb 7, 2015

take the hedge fund. im concerned you dont really even know what structured credit is yet youre thinking about doing it. please do your research.

Feb 7, 2016