Transition from trading to research
How difficult is it for a junior Equity/Credit trader (1-2 years experience) to transition into a fundamental Equity/Credit research role within the same BB?
Is it easier to transition from Equity trading to Equity Research, or from Credit Trading to Credit Research? Because from my understanding, ER is a separate division from Equity Trading; while Credit Research is literally sitting on the same desk with Credit traders (I could be wrong).
PS: By Credit Research I mean fundamental, bottom-up company research based on 3-statement-modelling (so not credit risk assessment and the like)
Thanks in advance!
Bump. Any insights would be appreciated.
Not all credit guys sit with the traders as far as I know, but certain credit teams definitely do.
To be honest, I don't think you'd be at any advantage (by coming from equity trading) or disadvantage (by coming from credit trading) if you want to transition to equity research. At the end of the day, it's "quite" similar work that you are doing, just the focus and nuances are a bit different.
Equity trading to research is actually a very tough move. In trading you are not doing any fundamental research; the emphasis is on short-term profits and capturing flow. Very different skillset from ER. Not saying that the move is not possible, but you would probably need either a CFA or an MBA to make that switch.
Trading to Research (Originally Posted: 08/26/2008)
For a person that works at a top-tier IB, how easy is it to move from being a Trader to being an Equity Research Analyst?
If moving externally, I would say slim to none. If moving internally, it would depend upon which area of trading you are in and your relationships with the various interested parties - but it won't be easy and you have to be careful not to tread on any toes.
The skills for being a trader and a research analyst are not mutually exclusive but they are viewed as being very different.
If you are trading a particular sector, you should be fairly close to the research team anyway. Ask the top research guy in your sector out for an informal drink after work and see what he thinks. If he views you favourably and he has a spot on his team then it could be a goer. If it is then approach your own boss about the idea. (s)he will be pissed as they will need to replace you - that's why you feel out the research guy first.
agreed-- internally is really your best bet..if you can do it, after a yr or so, you should be able to move externally or to a HF if you want.
i've heard of a lot of researchers moving into trading - the only ones I know who did it went into prop. does anybody know somebody who went from research into flow? i agree the jobs would be very different and demand different skillsets
it doesn't make sense to move into flow - why would you? It has nothing to do with research, whereas prop does. Prop is useful and linked to research, as you're making trading decisions.
to the OP what kind of trading are we talking about here. May i ask why you think you would want to move from trading to ER?
said that wrong - I don't know anyone who went from flow into research. we usually put new hires with our desk researchers so they learn about the cos and industries we cover, but the desk researchers don't do near the level of stuff that the publishinhg team puts out.
prop is definitely more close to research than flow, but i wouldn't say flow has 'nothing' to do with research
What does flow have to do at all with research? I'd say close to nothing.
you don't actually compile the research or write a proposal, but you read plenty of them - that's got to count for something, no?
it just helps to understand the financial statements and how to analyze companies before you start trading them
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