I'll be interviewing for S&T SA positions this upcoming fall and the vibe I get is that equities is a poor desk to enter. However, I haven't been told why other than brief statements about "automation" and "equities in Dallas." I don't particularly care what others think of me, currently my interests lie in international equities/REITs and possibly equity-linked derivatives, so convince me why entering equities S&T is a bad idea. Also, I am aiming for sales, not trading.
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If you're aiming for sales, your product matters a lot less than trading. I don't really know what the point of this post is, if you've made up your mind equities are what to do, then do it...
My point is that I've been told countless times to avoid equities, and that's fine. I just want reasons.
The underlying difference b/t equities and ficc S&T lies in the difference of the markets... In eq, everyone, and i mean everyone, knows the price of a stock. In fi, a client calls his sales guy and "asks" for a price on a particular bond. The sales guy works with his trader to get a price, he goes back to the client and a negotiation happens. What you bought it for, and what you are selling it for can be a huge difference, in the 7 figures if the bond is big enough (this doesn't happen in equities BC everyone knows the price).... The biggest difference is that in fi, your clients actually need the sales guys info to complete the trade, in equities, the client may use your info, or might completely disregard it and still be able to make the investment... Much more admin work than fi too - booking meetings for ipo's/research analyst mtgs etc. Not to mention the fi market dwarfs the equities market in sheer size. Sucks BC I am in equities, but at least I have realized it early on.... Also really depends on what shop you are at ie. GS equities - $7.1B in revs (can still make alot of $) vs. RBC ~$700M..... You get my point.
It's a better play than unemployment.
this.
Crash pretty much nailed it, but spreads are tightening in FI too it's not a wonderland over there either. If you're a good salesperson you will do well on any desk, doesn't matter FI or equities. Exotic equity derivs desk made boat loads at my old bank.
If someone told you automation was a big issue as far as the equities business and you don't understand why that's a bad thing, I have some bad news...
Of course I understand what is meant by "automation." What I am looking for is elaboration which Davis kindly provided.
equities is dead has been around since the stupid comments made in Liars Poker. The equity guys did very well in the 80s and 90s. Pay isnt quite what it used to be in the space but its not going to be obsolete. Sell side block traders are going away and the value has instead shifted over to the Program Trading Desks that know how to manage a suite of algos.
So if you want to be an equities guy that isnt able to keep up with the times then you are not going to make it.
I can certainly see why algos are taking over block trading in equities. I am more interested in institutional and corporate sales though, not trading.
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