CFA Salaries

[villnius]

Becasue Fixed Income is the shiz. No one wants to end up doing “Equities in Dallas”

[spunboy]

It takes over $2 trillion of credit origination a day to make the world go around. I heard this number back in 2008 when someone was trying to emphasize how important it was to have a functional credit market.

[brain_wash_your_face]

Fixed income AUM are generally bigger for most FI asset classes (except those that are capacity constrained like non-agency MBS), but the fees are significantly lower. I suspect this pay discrepancy has more to do with the firms located in MN (few) than anything: it is a biased sample. Also, equity analysts make much more than fixed income analyst after they have 10 years experience, according to this report. Less experienced equity PMs make more than more experienced ones, according to this report.

In short, this comp survey is too small and makes no sense.

[youreskimofriend]

I feel enlightened. Thx

[whatsyourgovt]

@Sweep_the_Leg

@brain\_wash\_your\_face

I think CPM depends where you work, to an extent. Do you see overlap between whoesaling and institutional sales? I just have a lot of contacts throughout the research teams, consultants, big family offices and the like that I’ve built over the last ten 7 or 8 years, so thinking about whether it makes sense to leverage that.

Yeah, there’s definitely overlap. If you think about a family office or huge RIA it’s hard to draw the line and say it’s retail (wholesale) or institutional. Generally things like DB plans, endowments & foundations, and gigantic DC plans would clearly be institutional; and an RIA would almost always be retail. But, what happens when an RIA has $5B under management with $3B in DB plans and endowments, and $2B in private client assets? It’s a touchy subject between sales teams.

IMO, it’s actually easier to make bigger bucks being a wholesaler, but it’s much more of a grind than institutional sales. Plus, you have to deal with a lot of idiot advisors. Sure, making $700k a year is awesome, but you have to talk to Ed Jones advisors…ew. The flip side is you get sales every day as a wholesaler and it’s much easier to track your sales where as institutional sales guys may only have one or two sales a year…sometimes none.

hahah well put. You dont like speaking to the “BOAs”? I used to, while acting in such a capacity, totally put down such a career path because it is highly lacking any intellecutual stimulation and such a mundane process. Nevertheless, we are all prostitutes for money and one must do what he must do to keep up with the jones’s.

[Sweep_the_Leg]

@bchad

1. The FI market is about 4x the size of the equity market; that’s an old number, so it may have changed in the past few years, but it’s not an order-of-magnitude change. So the % on AUM should produce a higher payout pool for total compensation.

But, fees on fixed income products are much less than equity products. You generally need to bring in $4 of FI for every $1 into an equity fund to generate the same revenue.