I am not sure we are talking about the same thing. what is your definition of capital structure arbitrage?
Trading convertible and high yield markets, conventional equity, and fixed-income arbitrage. Finding mis-valued securities that are in play. Identifying and trading convertible or debt securities with an asymmetric return profile...those that provide an equity level return in the positive case, but with limited expected risk of loss in the negative case. What do you define it as?
If you think you have to be a genius to trade, you are wrong. One of our best traders who does capital structure arbitrage used to be a fireman. He could probably teach you a few things. He would never take a quant job at some institution. It would be a paycut. Open your mind, dude! There are very successful people that come from all walks of life.
I'm with you man - completely unshackled and independent with plenty of time to smell every rose. better than prop, bank or fund in my opinion. yeeha
Institutional trading floors are designed to be impressive. So, its no surprise that you were impressed. Fancy furnishings, the Ivy League diplomas, business suits etc. They are designed to impress customers and potential customers they bring in - insurance companies from Indiana, Japanese exporters. If they didn't have customers to impress, their trading floors would probably look just like a prop trading floor. Its a matter of do you want to pay for all that. In a prop org you are the customer - do you want to pay?
Soo oooo ...... Did they hire you ? How many hours you plan to work per week ? Did they give you an employment contract ? No ? Oh well, its ok because that impressive trading floor will more than make up for anything else. How long you plan to work there ? Did you ask the guys on the desk how long they have been there and what their career path plan is ? Oh, I see. Well, they are such nice guys I'm sure they will take you on and treat you really well. Vacation ? Perks ? Oh, I see. Everybody is afraid to take a vacation ? Yeah well that bonus will make up for it. Bonus ? Oh, I see. Yeah, they had a tough year and had to cut those. Well at least you get all the free coffee and soda you want. Oh, they cut staff food out of the budget. Well, that great commute downtown makes it all worth while right ?
I'm curious, what's your (or his) definition of Capital Structure Arb? This is not a challenge. I'm sincerely interested to see if everyone is referring to the same thing. Thanks, Dr. Zhivodka
lol Caltrader. that's the most accurate portrayal of the investment bank experience i've ever read on this board.
Scroll back 8 posts...I posted my definition earlier. No challenge taken. If what I define as cap structure arb is not accurate, please correct me. I certainly am not a Ivy league graduate.