Prime Brokerage=Front Office?

I dunno anything about the specifics of the job position or compensation, but in general, prime brokerage is front-office/revenue-generating: prime brokers keep hedge fund assets (capital which the banks use to lend/trade if i'm not mistaken), and also provide services to the hedge funds. For a firm like Morgan Stanley, this division used to at least be a very large moneymaker.

Thanks for the info guys; any other input would be greatly appreciated.

How is mobility through different divisions at MS? While I think (or at least like to think) that I have other options, MS is a competitive BB, and it's just a summer stint. I'm just curious as to whether or not I can transform it into something more than just prime brokerage. I know companies like GS are extremely strict when it comes to mobilizing while companies like UBS tend to be a lot more lax as long as you prove yourself. Where does MS lie?

The PB sales guys can make over $1M. That aspect is definitely front office.

I interned there. It WAS great .. dont know what it's like anymore.. what team are you interviewing with?

Generally I would recommend avoiding Client Service. The networking was great .. the people I worked with there were well connected and introduced me to people in IBD and S&T .. PM me if you have any specific questions about PB. The comp was good when I was there but the world has obviously changed.

PB is different bc you cant really connect revenue to individuals. In trading, you have your PnL. In PB, once the client is signed, you just loan them money and stock and offer them many "free" services. Good luck

PBers work with HF ops

prime brokerage can make you a lot of money at senior levels. Especially when you have you start bringing in new hedge fund clients.

if the role is client service, that is effectively back office as mentioned above. avoid unless it is your only offer. transferring to front office from cleint service will be very very difficult (bc most guys in client service are kinda stupid and it has a bad rep). if you are sales coverage or origination, that is front office and can bring in solid cash at the senior levels.

there are also risk/trading type roles that can bring in good money and create nice opportunities. managing the overall risk of the client portfolios and your exposures is essentially trading. loaning cash against portfolios of asset collateral is like writing structured puts. not all PBs have much sophistication in this area, but MS does. although i know their PB business has scaled back a LOT ever since lehman went down.

otherwise its BO

The world has changed. And we must change with it.