I'm considering switching from structured credit derivs trading to equity derivs. I know there are a bunch of quant traders on this board. I'm sort of tired of the whole credit correlation space. The margins are very tight, it's hard for hedge funds to launch right now, and half of the senior guys at the major dealers have left the field. Besides, all the action ius in London, and I don't want to move there from the US.So my question is: What is the best thing for me to do? I have 8 years experience in exotic IR derivatives, and 9 years experience in credit derivs, especially CDO, synthetics and correlation trading. I'm thinking equity derivs because they keep having good years, and I haven't done it yet, so it would be exciting. Should I consider hybrids, converts, equity exotics?Feedback appreciated.

A. Wrong forum; andB. Y do u think equity derivs is a better place right now...equity vol has been dead for like 4 yrs. and the convert bizness is a disaster.I would think there will be plenty of action during the next credit event. Spreads will blow-out and you'll be able to make money, unless you r a perma-convergence trader, then u will get smoked like they did during the GM/F blowout last year.

Just to confim, the margins are tighter on equity than credit derivatives. Just have a look at what is the bid offer on a CDS and you'll see why. CBs got crushed last year. On the exotics side, there are many newcomers so unless you are working for a recognized name (attracting deals with the brand), it is hard to get business at all. If you just want to trade to launch a fund, you don't really care about the market anyway. If you want to go to the new, new thing, go to hybrids.

i would like to be an exotic credit trader than working on equity derivatives. I was stuck on equity side for the last 2.5 years which I don't see any hope to make good and stable money.j20056: Let's do a swap ...