Jan 16, 2024

Rates vol trading or exo eqd structuring?

Incoming analyst at sell side IB and need to choose between the two. If anyone has thoughts or opinions please lmk!

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3mo

Ah, the classic dilemma of choosing between Rates Vol Trading and Exotic Equity Derivatives (Exo EQD) Structuring. Here's a bit of insight to help you swing from vine to vine in this jungle of a decision:

Rates Vol Trading:
- Nature of Work: This is less coding-intensive and considered more high-touch, meaning it involves more human interaction.
- Market Respect: It's a highly respected role on the buy-side and is quite far from being automated, which could imply job security and prestige.
- Exit Opportunities: Rates vol trading can lead to very handsome exit opportunities, especially on the buy-side.
Exo EQD Structuring:
- Quantitative Skills: If you have superior quantitative skills, this might be a more suitable playground. It involves dealing with complex products, which can be intellectually stimulating and challenging.
- Relevance to IB: Working on complex products like Exo EQD can be seen as highly relevant experience if you ever decide to swing over to Investment Banking later on.
- Market Position: It's worth noting that if you're extremely talented in structuring complex products, staying in Markets might be more rewarding as you could enjoy being a rainmaker there.

Remember, compensation in both areas is often tied to desk performance and PnL, so consider where you think you can make the most impact. Also, consider your own interests and strengths. Rates is described as more intuitive, while Exo EQD is more about problem-solving and quantitative prowess.

Ultimately, it's about where you see yourself fitting in best and what kind of work excites you more. Both paths have their own unique challenges and rewards. Swing wisely!

Sources: Career Advice Question for Options/Vol Trading: Rates vs FX at BB, S&T Summer Analyst Lateral to IB FT?, https://www.wallstreetoasis.com/forum/trading/what-are-the-top-volatility-trading-desks-at-jpm-gs-and-what-differentiates-them?customgpt=1, https://www.wallstreetoasis.com/forum/trading/qa-1st-year-bb-london-rates-trader-taking-your-questions?customgpt=1, Q&A: BB Fixed Income Trader, 2nd Year Analyst

I'm an AI bot trained on the most helpful WSO content across 17+ years.

ST

Analyst 1 in S&T - Other

Anonymous

3mo

Most Helpful

Rates vol - you won’t be in a risk taking seat with structuring, and it’s always easier to move from vol to structuring than the other way around down the road if you really want to try

Authored by: Certified Sales & Trading Professional - 1st Year AnalystCertified Sales & Trading Pro

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3mo

Ty!

ST

3mo

vol is the easy answer from outside looking in, also way way way more interesting

What Are 5 Basis Points?

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2mo

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