Can anyone of my educated peers please tell me what this involves? i’m thinking of appyling for a position- Here’s what i found on the website: X Prime Broking, a highly specialised division within X Securities, combines the provision of administration services, the execution of transactions and scrip lending facilities, with leading technology and excellent client service. We offer hedge fund managers a one-stop prime broking service of the highest quality, through a combination of an all-encompassing product range, including X CfD’s, a world-class fund management system and ongoing commitment to client service. Any advice appreciated. I’ve tried to get in as an analyst at X, but they’re not hiring. I work for the same company but in Asset Management-so it’d be an internal move. I’ve also tried to get in as an analyst within X asset management but they want at least CFA Level 3.
google anywhere “prime brokerage” and you can find out what this biz is about. Morgan and Goldman are the 2 best at it…
Bannis…u think it’s worth getting into?
Most people who get into prime brokerage, seem to get stuck in there for awhile. I would wait for an Analyst position instead. X=Investec?
I can’t believe I’m back on the boards. The CFA vacation was nice while it lasted… Anyway, prime brokerage is a simple concept. If a firm wanted to trade through another firm, you would set up a prime brokerage account through another firm and trade through them. This is not much different from bying through your own broker except it with a seperate entity. Why would someone want to trade through another firm? Either you think you can have better execution, soft dollar credit, better inventory of securities, your current brokerage firm doesn’t prove swaps, the prime brokerage firm offers a better trading platform, etc… I"m not sure if you are looking for specific details though.
Kev, where u from? How’d you deduce that?
nova_cfa Wrote: ------------------------------------------------------- > I can’t believe I’m back on the boards. The CFA > vacation was nice while it lasted… > > Anyway, prime brokerage is a simple concept. If a > firm wanted to trade through another firm, you > would set up a prime brokerage account through > another firm and trade through them. This is not > much different from bying through your own broker > except it with a seperate entity. Why would > someone want to trade through another firm? > Either you think you can have better execution, > soft dollar credit, better inventory of > securities, your current brokerage firm doesn’t > prove swaps, the prime brokerage firm offers a > better trading platform, etc… > > I"m not sure if you are looking for specific > details though. Thanks mate. Appreciate it.
PBs are basically a single point of sales & cross selling of multiple banking products to a client (usually a hedge fund). They coordinate capital introduction (help you raise assets), facilitate stock loan, negotiate brokerage rates, soft dollars, etc. They typically need to know a lot about the bank’s services, how they work, and the needs of specific types of funds (a distressed debt fund most likely does not need a stock loan facility). From my experience, they know a lot of ‘soft’ skills, but not really analyst-types. They can make a ton of money (as any sales role can, I suppose) but once you’re in that kind of role, I think that it prevents you from taking a more analytical position. HTH
thats back office as heck
well, you’re client facing in terms of liaising with the fund managers, etc. but thats about it. you’ll probably spend more time ironing out problems with your desks (stock loan, execution, etc.) than even thinking about the market. it is NOT a market-facing role, what so ever.
Sha_CFA Wrote: ------------------------------------------------------- > Kev, where u from? > > How’d you deduce that? I’m not from SA. Google
prime brokers are the brokers who cater to hedge funds. they lend money for leveraged positions, lend stocks for short selling and also executes trades. a PB would be in the best position to understand and know what a specific HF’s strategies and positions are. PB are back office. if u want to get into HFs, this is NOT the way to go.
PB could get you into hedge fund, but rare best way into hedge world is to be a rock star trader at a bulge bracket, be a good sell side analyst, or do 2 years of i banking/PE at least… most come from the analyst or trading route.
I work in an IT role in PrimeBrokerage. PrimeBrokers cater to the needs for large Hedge fund clients. They provide there own trading platform and get the trades settled from the exchange directly for the HF clients. They also lend securities to their HF clients from their own repository whenevr they need. The most you can do here is interact directly with Hedge Fund clients if you are in front office role. I do not think this requires much analysis kind of job. I too am trying to move from the IT PB role to a trading / analysis role.
Thanks guys! Really appreciate everyone’s advice. oh and good luck to everyone come the 19th!
I think you guys are underestimating the value of prime brokerage experience. The deal is that you get prime brokerage experience and then move into treasury at a hedge fund. A good treasury guy is an awesome asset at a hedge fund.
Hey Joey - As I said, I am in Primebrokerage IT. My profile does not involve interaction with hedge fund clients at all but working with the applications they use for trading /settlement etc. Any advices, on how I can take this further to moving to hedge fund industry? Will my experience count for helping me to move into it and how do I represent it? What does a treasury guy do at a hedge fund? Does he handle the assetbase repository and lend securities to these clients whenever they require? If yes, how does that profile merge with our CFA knowledge? Ur is help much appreciated and required bro.
JoeyDVivre Wrote: ------------------------------------------------------- > I think you guys are underestimating the value of > prime brokerage experience. The deal is that you > get prime brokerage experience and then move into > treasury at a hedge fund. A good treasury guy is > an awesome asset at a hedge fund. And if Joey says it’s worth a shot, i’ll definitely give it a shot at my interview on Friday. I think the role is front-office so at least it’ll be decent exposure…plus i don’t mind testing the waters till i find something i really like.