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Thoughts on Central Risk Book Trading?

bigmanalways

New Member
I'm considering applying to a role on Central Risk Book at a solid BB firm (think BAML, MS) within the S&T division. It looks like a front office role. I have a CS background from a top school. I wanted to understand a few things:

1) what are the exit opps of such a role? can I exit to a traditional quant/prop firm or SWE after a year or two?
2) what is compensation like on the desk?
3) is there internal respect for the desk?
4) what are they looking for on the desk?

My understanding is that these desks are growing, but I don't know what the career progression is like or how well you get paid, any help is appreciated.

Thanks so much!
 

throll

Active Member
CRB could be good start if you have nothing better. In essence they are the same as XVA desks in banks, so mostly an internal postion, very dependable on the infrastructure/setup of the bank. You can exist for another CRB at another bank however you could potentially land a traditional trader role provided you don't stay for too long. CRB are highly political as well. I expect pay to be ok but not great same as for XVA Trader.
 

bigmanalways

New Member
CRB could be good start if you have nothing better. In essence they are the same as XVA desks in banks, so mostly an internal postion, very dependable on the infrastructure/setup of the bank. You can exist for another CRB at another bank however you could potentially land a traditional trader role provided you don't stay for too long. CRB are highly political as well. I expect pay to be ok but not great same as for XVA Trader.
Thanks for the reply! By traditional trader role, do you mean a position at a quant shop like JS/Optiver/etc? Thanks
 

throll

Active Member
Yes. If this your first job you have always the chance to do something different in a year or two. CRB is in front office and should give you good exposure so you will have plenty of opportunity to network. You will have to make more effort to get outside to a quant shop but should be doable.
 

longgamma

Well-Known Member
C++
I'm considering applying to a role on Central Risk Book at a solid BB firm (think BAML, MS) within the S&T division. It looks like a front office role. I have a CS background from a top school. I wanted to understand a few things:

1) what are the exit opps of such a role? can I exit to a traditional quant/prop firm or SWE after a year or two?
2) what is compensation like on the desk?
3) is there internal respect for the desk?
4) what are they looking for on the desk?

My understanding is that these desks are growing, but I don't know what the career progression is like or how well you get paid, any help is appreciated.

Thanks so much!

Its a great place to start. Do you have an understanding of what the CRB book does and what exact role are you being offered? It is a front office role and usually sits within the cash equities desk.

Exit opps - what interests you? A few years in a BB is a great way to jump to a junior trader role in buy side
Comp - cash desk is paid well but less than IB side atleast for till you hit VP
Internal respect - lol, the other traders will hate you. You are taking execution power from them also general wariness around quants in sell side shops. But who cares?
What they are looking for - you would be essentialy aggregating risk across the entire equities team. In the end, you must have a read on the markets. You dont need to be right just most of the times. When I left the BB I worked at, they were setting it up with a bunch of quants from the old prop desk. DB had a big debacle with a $60mn hole two years ago in the CRB book.

Dont stick around in sell side for long.
 
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