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Jurassic


Total Posts: 96
Joined: Mar 2018
 
Posted: 2018-04-22 19:13
How would you guys answer the question:

"Why sell side trading over being on the buyside?"

Quant or not quant answers are both fine.

tbretagn


Total Posts: 256
Joined: Oct 2004
 
Posted: 2018-04-22 21:17
Maybe because without sell side trading there's no buy side possible? Wink
But to be clear, having been on the buy side all my life (not quant) I keep hearing how the sell side thinks it's just a wonderful free world where money grows on trees, no compliance etc... I think it's fair to say some in HF still have loose risk controls, but mostly it's been tightened up a lot. As such it's much harder to roll the dice or even get very agressive at times because of the increased scrutiny from risk management.
In the end the guys I see making money are the bluecrest types with a quasi bank desk replication (let's look for micro carry we can leverage) given banks have less capability to warehouse.
And yes in banks you will be focusing on a specific opportunity set and can't hedge with everything and as such feel constrained, but it's pretty rare nowadays to have global products books in HFs as well.

So to be fair I'm actually tempted to move to the sell side as I feel it could be quite interesting. Though there's a large dose of racism towards hedgies trying to make the move to be honest.

My 2 cents.



Et meme si ce n'est pas vrai, il faut croire en l'histoire ancienne

day1pnl


Total Posts: 29
Joined: Jun 2017
 
Posted: 2018-04-23 09:11
Sounds like the same is happening everywhere: more control functions in some shape or form. Also, the most of the interesting “sell side quant stuff” has already been solved Many years ago, and new products wth too many bells and whistles are scrapped at the outset. The 2008-guys really did us all a dis-favor by blowing up the World. Now there are a lot more boxes to check and more people not directly trading who have a say in whether something flies or not - or maybe that is just where i work.. All is sort of more back to basics now.

Buyside can definitely warehouse bigger size and potentially trade both prop and make markets if they wanted to (dont understand why they are *not* doing that in say insurance/pensions - banks can easily be priced out - is it some kind of courtesy that they are not doing it?). These days information is quite symmetric too (everyone thinks everyone else knows more than yourself). To add to that, in sell side sometimes you get given dynamite into your books you cant get rid. But on buyside you could just spend all your time constructing a book of all the Nice risks in the World that you want and comp is probably better there too.

My 2c

Jurassic


Total Posts: 96
Joined: Mar 2018
 
Posted: 2018-04-25 21:03
yeah but what is a good answer for why sellside over the buyside?

Jurassic


Total Posts: 96
Joined: Mar 2018
 
Posted: 2018-06-18 19:30
Anyone got an answer?

tabris


Total Posts: 1255
Joined: Feb 2005
 
Posted: 2018-06-19 02:31
Because sell side pays stupid salaries and won't care if you f up? Because the sell side actually have decently big training programs for the new grads to climb up? Because some banks have an unfair competitive advantage in certain products in certain markets and you will never be able to replicate that at buy side?

Tons dude. Just go to one of the NP beer fest and buy those guys a drink, especially Nonius. A few vodkas in and he will tell you the truth about the dark side

Dilbert: Why does it seem as though I am the only honest guy on earth? Dogbert: Your type tends not to reproduce.
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