Peter's Q2 2019 Market Report

2019 Q2 Summary

Some of you work at these companies. More of you will work at these companies in the future. The traditional market in financial services, i.e. IBs, continues to be slow and it’s almost certain that there won’t be any change for the rest of 2019. Banks over-hired in 2017 and 2018, and now they are working to manage budgets down. Q2 doesn’t look rosy. In trading, banks with higher market share have a significant edge in profitability, putting pressure on blue chips Goldman and Morgan Stanley. Meanwhile, investment in FinTech is soaring, and per TechCrunch, “There are more FinTech Unicorns than any other vertical in the Unicorn Club.”

In fact, we currently have an unusually robust array of opportunities (see Opportunities below). These positions are a mix of Buy Side, Sell Side, and FinTech roles.

We’re Number 1!

Bloomberg reported “New York Beats Out San Francisco to Be World’s Best Tech City.” The article is based on a report by Savills. That was fast!

 Note to anyone interviewing at GS

You have homework! Goldman just released a documentary about itself, and it’s probably a good idea to watch it if you are going to interview there. After all, somebody might ask you this question.

Interview Preparation – Here’s what you’re up against

Our field is one in which you get paid for solving a series of technical/mathematical problems over the course of a few hours. You don’t have sales figures, turn-around stories, or a book of business to talk about. You get paid for what’s between your ears and your ability to communicate it. Of course, over time, performance must be sustained, but interviewing is the path to more lucrative opportunities.

How much prep is enough? Only you can determine what it takes to be ready but be aware that there are individuals who take preparation very seriously. We work with people who take months to prepare for interviews. One of those individuals may be interviewing for the same position you are.

We have recommended many resources over the years, but I want to call attention to Chapters 1 and 2 of Elements of Programming Interviews. These chapters contain a fantastic overview of what to expect, how to prepare, and how to manage the interview process. Do not skip straight to the problems.

What am I Worth?

This is one of the hardest questions I get. Everyone wants the answer, but the only way to know is to put yourself on the market and see. The market for talent is quite imperfect outside of commodity type positions, and we see tremendous variation. I see a lot of figures and can give you an idea of what’s possible, but there’s no sure answer until the market speaks.

Teaching Coders to Trade

A new program at Citi is teaching coders to trade and traders to code. Citadel’s NXT program is also very interesting. Companies are getting more creative at finding ways to appeal to top talent.

Opportunities

This is the most interesting mix of positions we’ve been working on in some time. Please call to learn more.

Current Priorities

FinTech

• Numerate Python Developer – Successful UK-based quantitative startup opening NYC office

• Java low-latency Engineer – Jr/Mid – Credit algo trading startup

• Go/AWS/Javascript Engineer – Trade clearing startup

• SRE – Trade clearing startup

• Lead front-end engineer – Trade clearing startup

• Data Engineer – Trade clearing startup

Buy Side

• Lead C++ Engineer – HFT Trading, prop trading firm

• Junior C++ Engineer - HFT Trading, prop trading firm

• C++ Engineer - ETF Trading – Leading hedge fund

• SRE – Leading hedge fund

• Java Engineer – Leading hedge fund – Compliance Technology

• C# Engineer – Jr/Mid - Green-field dev, new, strategic trading platform – New Large Hedge Fund

• C#/Javascript UI Engineer – Data Science Group – Leading Asset Manager

• Python/C# Engineer – Portfolio Analytics - Leading Asset Manager – Contract

• Java low-latency Engineer – Trading Systems - Algo Hedge Fund

• UI Engineer – C#, Excel Add-in – Data Science Data delivery

• Junior/Mid Python Engineer – research platform – new algo fund @leading asset mgr

• Data Engineer – SQL Server, C#, MongoDB/Spark – Healthcare hedge fund / VC

• CRM BA - MS Dynamics CRM, Proj Mgt, SQL – Healthcare hedge fund / VC

• Data Scientist - Python, SQL, R, C#, ML – Healthcare hedge fund / VC

• Desktop Support – Healthcare hedge fund / VC

Sell Side

• Senior Python/Javascript Fixed Income Engineer – Fixed Income Strats – Language agnostic

• Java low-latency Engineer - Equity ETrading

• KDB/Java/JavaScript Engineer – Fixed Income Credit Strats

• Python Engineer - Equity eTrading Tooling and Instrumentation

• Java/C++ - FICC eTrading Tooling and Instrumentation

• Javascript, React Engineer – Strategic end-user research platform

• Java eTrading Engineer, Fixed Income

• Java/Scala Developer – Contract (mid rate)

Peter's Q1 2019 Market Report

2019 Q1 Summary

Last quarter I said that I wouldn’t try to predict the market in Q1. Well, now we know – things are very slow. There’s a lot of economic uncertainty, and the hangover from a very poor Q4 has lasted right through the entirety of Q1. Q1 results will help to dictate whether firms can start hiring again, but there are larger concerns as well. Decreased trading volumes in both fixed income and equity markets have firms assessing whether they are right-sized. Their conclusions will have a significant impact on hiring for the rest of the year.

Layoffs have not been particularly large, but they’ve been broad and steady. Bloomberg: “In 2018, the 12 largest global investment banks cut front-office headcount for at least the fifth straight year.” It would be interesting to see these numbers separately for US and foreign banks, as foreign banks have cut significantly more jobs. 2019 looks sure to continue the streak.

The contract market at the investment banks has been hit particularly hard. We’ve seen hard freezes on contract hiring, rate cuts, and layoffs. The freeze on contract hiring at some banks has hit 5 months.

The Buy Side is always harder to parse, but here’s a good overview of what’s happening there showing an overall headcount that is slightly up (1%), quarter over quarter. Hedge fund assets continue to grow, which is a good sign.

Technology in NYC - continued

The New York Times published a great article last month, “It Started With a Jolt: How New York Became a Tech Town.” Who remembers that Fortran was written on East 56th Street and C, C++, and Unix were developed in NJ? Venture capital dollars in 2018 by state: CA $11.6b, MA $2.6b, NY $2.4b.

Old sh!t

According to a recent article in The Financial Revolutionist, “estimates are that banks spend 80-plus percent of their IT budgets on maintenance.” This figure is dismaying to everyone – management, developers, users, and even me (popular request from candidates – greenfield development). A lot of FinTech investment is going towards addressing this problem.

Does this make Goldman Cooler?

See David Solomon, Goldman’s new CEO. GS has changed their dress code, and Solomon has a non-corporate view of internships as well.

Premium Processing Returns

Changes in H1-B processing over the past year have wreaked havoc on many a visa transfer, and the ability to change firms has been hampered for H-1B holders. The return of premium processing is a welcome development.

Failure Resume

Bad resumes are a pet peeve of mine. Here’s an entirely different take – write a Failure Resume.

Opportunities

The one theme we are seeing with respect to open positions is that firms are looking for senior, hands-on developers. Companies continue to hire and pay those rare individuals who can code circles around their peers.

We expect to see an influx of new openings over the next couple of months, and this list will change rapidly in 2019. Please stay in touch.

Current Priorities

FinTech

• Go/AWS/Javascript Developer – Software engineer to build new state of the art clearing system

• C++ Developer – Bitcoin mining

Buy Side

• UI Developer (web, full stack) – Healthcare hedge fund / VC

• UI Developer – C#, Excel Add-in – Data Science Data delivery

• Java Developer – Fixed Income eTrading – West Coast

• Java Developer – Leading hedge fund – Compliance Technology

• Junior/Mid Python Developer – research platform – new algo fund @leading asset mgr

• Python Data Engineer – Hedge fund – NYC or Dallas

• SRE – Leading hedge fund

• QA Engineer – Leading hedge fund

Sell Side

• Senior Python Developer (ED) – Fixed Income Strats – Language agnostic

• Java or C++ - Senior Equity ETrading Platform Developer

• KDB/Java/JavaScript Developer – Fixed Income Credit Strats

• KDB Developer – Credit Strats

• Python Developer - Equity eTrading Tooling and Instrumentation

• NLP Expert – SPG IT – Contract

Peter's Q4 2018 Market Report

2018 Q4 Summary

Happy New Year!

In Q4 I often try to communicate what we expect in Q1 of the following year. This year? Forget about it. Given the recent market volatility, uncertainty with the global economic outlook, and the current administration, nobody has any idea what to expect in 2019… That being said, we always have active clients and robust demand for top technical people, so please be in touch in 2019 to discuss options.

Technology in NYC

Amazon HQ2 was the big news a few weeks ago for the NYC area, but Amazon is only part of the story regarding technology jobs in New York. Google’s recent announcement that it is doubling its NYC footprint hardly drew any attention, but it is equally big news for the IT job market. Financial companies are already competing for developers with Google, Amazon, Facebook, and others, and it looks like the competition will only intensify in the coming years. While hiring in the financial sector has been reasonably robust over the past few years, it is clearly the technology companies that that have been driving salaries in New York for the past few years. Banks and hedge funds are now competing more with technology than with each other for top technical talent.

Emerging Jobs

LinkedIn’s Emerging Jobs Report 2018 doesn’t include many surprises, and it quantifies what we’ve seen anecdotally in the job market in the past year or two. Three of the top 5 Emerging Jobs are in the trendy areas of Machine Learning and Blockchain:

·         Blockchain Developer
·         Machine Learning Engineer
·         Machine Learning Specialist

What’s the difference between ML Engineer and ML Specialist? Nothing, as far as I can tell! And honestly, this is precisely why I started Affinity North. The recruiting industry in general has a difficult time understanding technical jobs. While it can be hard to keep up with technology, we at Affinity North come from technical backgrounds, and we do our best to understand the roles we work on and represent them accurately. As for Blockchain and ML, I expect we’ll see many more of these kinds of jobs in 2019. Look which firm currently has the most Blockchain patents.

High demand for Data Engineers

Everybody knows that data is king these days. This translates to a high demand for data engineering. Almost every client of ours is working on improving their data platforms as a priority. Engineers who know how to leverage the latest technologies to build robust, scalable, data platforms are in very high demand.

The Fourth Hiring Trait

The famous three attributes for evaluating candidates – attitude, aptitude, and experience – are well known. It’s commonly discussed that you can succeed without experience, but you can’t succeed without either of the other 2 qualities. Warren Buffet prioritizes a different attribute – Integrity, and you can’t really argue with his logic.

Tom Searcy with CBS Money Watch offers this summary:

·         Hire someone with high energy, high intelligence, but low integrity and you'll get a smart, fast-moving thief

·         Hire someone with high intelligence, high integrity, but low energy and you'll get a shopkeeper, not an engine of growth

·         Hire someone with high energy, high integrity, but low intelligence and you'll get a strong functionary, but not a great problem solver or visionary

It’s interesting to note these statistics from leadershipiq.com:

·         46 percent of new hires will fail within 18 months

·         Only 19 percent of new hires will succeed over the long term

·         Of those that don’t last, a full 89 percent lose their jobs due to something involving their attitude or personality (lack of coachability, poor emotional intelligence, poor motivation, or a bad temperament)

·         Only 11 percent of new hire failures lose their jobs due to technical incompetence

All these studies are broader than our practice and need to be taken with a grain of salt. We work in rarified air where only the very smartest people with great attitudes thrive, and very high-level technical skills are absolutely required. However, a particular technical skill or experience is rarely a requirement, if the individual has general experience in the area and significant technical smarts.

Is Fintech Failing?

This article by Chris Meyers, a Fintech startup founder, is a good overview of the state of the industry.

A Break for Students (and Parents)

Goldman and JP Morgan in recent years had moved up the recruitment process to sophomore year. However, they have recently stopped the practice, and have gone back to recruiting during junior year. Several reasons were cited including the practice being disruptive to students, pressure from universities, and the fact that it wasn’t yielding a diverse candidate pool.

Opportunities

We expect to see a large influx of new openings over the next couple of months. This list will change rapidly in 2019. Please stay in touch.

Current Priorities

FinTech

• Go/AWS/Javascript Developer – Software engineer to build new state of the art clearing system

Buy Side

• Java or C# Developer – Leading asset mgr – Risk Attribution – Contract

• Java or C# Developer – Leading asset mgr – Development of new Portfolio Rebalancing system

• Java Developer – Leading hedge fund – Compliance Technology

• Junior/Mid Python Developer – research platform – new algo fund @leading asset mgr

• Python Data Engineer – Hedge fund – NYC or Dallas

• Lead C++ Developer – HFT/low-latency - prop trading

• C++ Analytics Developer – quant team - Leading asset mgr

Sell Side

• Java or C++ - Senior Equity ETrading Platform Developer

• Java or C++ - Senior Equity Algo Trading Developer

• KDB/Java/JavaScript Developer – Credit Strats – Contract/Fulltime

• KDB Developer – Credit Strats – Contract

• Javascript Developer – Credit Strats – Contract

• DevOps – Tools Developer

• DevOps – Release Engineer

• DevOps – Trading Systems Frontline Support

• Lead Data Engineer = Fixed Income Strats – Leading investment bank

• NLP Expert – SPG IT – Contract

Peter's Q3 2018 Market Report

2018 Q3 Summary

It’s fall and that means one thing – hold the hiring!  Kind of.  Full-time hires are generally on hold at the investment banks but hiring continues on a contract basis, and teams are eager to interview now for 2019 hires.  So, the demand remains, but the bean counters are having their way short-term.  Everything is moving more slowly right now, but, 2019 is right around the corner. Now is the time to get your resume updated and get prepared for your search if you’re thinking about making a change next year.

H1 Transfers get Harder and S..l..o..w..e..r

A good percentage of the people we work with are in this country on an H-1B visa.  While visa status has always been a big factor in job mobility, never has it been as significant as now.  Transfers used to be all-but automatic, and expedited processing was the routine choice of hiring companies.  However, premium processing is currently suspended.  RFE’s and denials have increased dramatically and now transfers can be denied w/o RFE. Whereas individuals used to change firms when they received notification that their application was received, now it has become necessary to wait for the actual transfer to occur.  The State Department has done a good job throwing sand into the immigration gears…  However, even with the added difficulties, companies are still quite comfortable hiring H-1B candidates. Nobody has told us that they won’t continue to hire H-1B candidates.  One client told us the process used to be 3-5 weeks, but now they count on 6-8 weeks.

Algo Trading

Good news for those who want to work in Algo Trading, which I know form conversation after conversation that many of you do!  Algo trading is steadily on the rise.  Fixed income electronic markets are steadily increasing their share of the market, and all of the big players are adding developers and quants to build systems that make markets on these venues.  And of course, the hedge funds and prop firms continue to invest in algo strategies and systems.  We have seen many such positions all year and continue to have demand for talented people with experience in this area.

Strong Market?

Anecdotal evidence from a couple of people we know – way more job solicitations this year than other years.  We’ve experienced a good market this year, but I’m curious about “way more… this year” Are others experiencing the same thing?  Does it reflect real demand or the introduction of more and more automated tools and “AI” that are making it easier for recruiters to spam the world?

Dynamic Programming Questions

Recently we’ve had a lot of candidates comment that they are being asked dynamic programming questions.  There’s no substitute for interview preparation. Here’s a good set of questions to review: Top 20 Dynamic Programming Interview Questions.

Amazon AWS Devs on Support

I always imagined that Amazon must have the most sophisticated DevOps setup in the history of man.  I was surprised to learn that developers are on a support rotation and regularly deal with production issues.  Working at a bank, I was very used to developers complaining about the amount of production support they did.  I was surprised to hear the same thing at Amazon of all places.

Opportunities

Please follow AffinityFin to be apprised of new opportunities.  Of course, the best way to learn about available opportunities is to email or call me directly.

Current Priorities

Buy Side

• Junior Python Developer – research platform - new hedge fund within leading asset management firm

• Java or C# Developer – Leading asset management firm - Contract

• Lead Data Engineer to build data platform – Algo hedge fund – Senior, reports to CTO

• Java/Python FIX Developer – fixed income connectivity – Contract

• Java Developer – Leading hedge fund

• Python Data Engineer – Hedge fund – NYC or Dallas

• C#/.Net Developer – Leading alternative investments firm

• Lead C++ Developer – HFT/low-latency - prop trading

• C++ Analytics Developer – quant team - Leading asset management firm

Sell Side

• Credit Risk/Counterparty Exposure Business Analyst – Contract

• SPG Desk Quant – Commercial focus – VP/ED

• Lead Data Engineer = Fixed Income Strats – Leading investment bank

• Java Developer – Strategic re-architecture of firmwide risk reporting – Contract

• C++ Developer – equity algo trading – Contract

• KDB Developer – SPG Strats – Contract

• Java Developer – Risk IT – Contract

• Java Developer – Finance IT – Contract

• Java Developer – Credit Risk IT – Contract

• Data Modeler – Finance IT - Contract

PETER'S Q2 2018 MARKET REPORT

2018 Q2 Summary

There hasn’t been much change in the hiring climate since Q1.  However, now that we are past the midway point of the year, the usual cyclical trends are emerging:  There is talk of hiring freezes, and it’s harder to move more than halfway through the year given prorated bonuses are the norm and firms are reluctant to pay significant $ up front to buy people out.  The more active companies this year are:

• Goldman Sachs - slowing
• Morgan Stanley – still hiring aggressively, especially contractors, though WM is paused
• JP Morgan – still hiring aggressively
• Bank of America – hitting the brakes

JP Morgan’s record Q2 earnings bode well for MS and GS next week, so I expect hiring to continue at these firms at least through Q3.

As firms evolve location strategies, hiring in NYC is limited to critical people. There are 10,000 fewer Wall Street jobs in NYC today than there were in 2007.  Offshoring is an old story, but there is a pronounced migration of mid and back-office functions to near-shore locations.  Also, firms are diversifying their location strategy to find technology talent in large metro areas that are not the usual non-NYC targets such as Research Triangle Park in NC.

• Goldman’s 4th largest office is now Salt Lake City
• Citigroup:
  • 212 job openings in Texas (Irving) / 127 in Florida / 94 in Ontario
  • 33 and 32 in NJ and NY respectfully
• Credit Suisse has moved a huge number of jobs to NC, and they are increasing their footprint in Tampa, FL

Industry experience is ever less important, as companies fight for technology talent at lower cost - bond math and Credit Risk can be learned on the job.

Base Salaries are Rising

Not dramatically, but creeping up as financial firms, technology firms, and startups vie for top people.  Some of the highest salaries I’ve seen are at startups of all places.

Diversity

Firms are actively prioritizing diversity hires in technology where diversity translates primarily to “women”.  Female candidates currently have a significant advantage in booking interviews.

Contracting and the New Tax Law

The new tax law if very favorable to pass-through entities.  20% of pass-through income is deducted from taxable income resulting in a significant tax benefit.  So, the benefits of corp-to-corp contracting now skew even further to C2C from W2.  Corporations that require W2 contracting arrangements will find it is even more expensive now than previously, as contractors require the same rate for W2 employment as C2C.

Python has won?

Two years ago, we referenced an article about Julia as a potential contender among new languages.  That game may be over.  An MD in the Strats group of a major investment bank recently concluded, “The entire world is coalescing around python because of its AI/ML support especially via TensorFlow.” We continue to see more and more demand for Python.

Blockchain ad Nauseam

Blockchain and crypto is everywhere these days. There doesn’t seem to be a niche that doesn’t have a new blockchain application.  I got a chuckle when a client said to me recently that he’s interested in Fintech, but emphasized, “anything that isn’t Blockchain.”  And now there’s even a blockchain cruise…

So You Want to be a Quant?

From the principal at a hedge fund client of ours: The hardest position to fill is infrastructure.  Quants are a dime a dozen. Quants are overpriced. 

Opportunities

Please follow AffinityFin to be apprised of new opportunities.  Of course, the best way to learn about available opportunities is to email or call me directly.

Current Priorities

Buy Side

• HFT C++ - Lead Developer – prop firm
• UI/Web Developer – Javascript/Angular2/Node - leading asset management company
• Python Developer – algo trading platform – alternative asset management company
• Machine Learning/NLP quant - C++/Python – leading asset management company
• Java Developer – jr/mid – leading hedge fund
• C++ Developer – jr/mid – leading hedge fund
• C++/Python – Front Office Developer – mid-sized hedge fund
• Low Latency Java Developer – Prop trading firm – Austin/Chicago/NY
• Data Engineer – Python/Java – hedge fund

Sell Side

Quant

• SPG Commercial Desk Quant – Leading investment bank
• Commercial ETF Strategist – Leading investment bank
• Mortgage Prepayment and Default Modeler – Leading investment bank
• Regulatory Modeler - ED – Leading investment bank
• Warehouse Lending Desk Strategist – Leading investment bank
• Corp Treasury Desk Strategist – Leading investment bank

Dev

• Fixed Income Strats Developer – Crack development team embedded within the Strats team on the business side – Java/Scala/Python/KDB/JavaScript – language agnostic
• Fixed Income Strats – Hands-on dev/Strat manager – ED – see above - Leading investment bank
• JavaScript/AngularJS – full-time and contract
• Java Data Developer – CVA/Credit risk
• Scala/Java Developer – Valuation and Risk Infrastructure – Leading investment bank
• Scala/Java Developer – Rates IT – Leading investment bank
• Java Developer – Treasury IT – Leading investment bank
• NLP/ML Data Engineer – Leading investment bank
• Java Developer – SPG IT – Leading investment bank
• Java Developer – Trade Flow - Credit IT – Leading investment bank
• Java Developer – Market Data - Credit IT – Leading investment bank
• .Net Hybrid Cloud Engineer – Leading investment bank
• UI Lead – Wealth Management – Leading investment bank

Contract

We always have a wide array of contract opportunities at good rates.  Current market for contractors is quite strong.

Let me know what you are looking for. 

Peter

PETER'S Q1 2018 MARKET REPORT

2018 Q1 Summary

The current market is relatively uneventful.  There’s no hard trend currently apparent.  Beginning of year hiring is underway, but the strength of demand varies from bank to bank.  Credit Suisse has been shedding NYC jobs liberally as positions are relocated to lower cost regions, and BofA has tightened budgets.  Overall, layoffs generally are down, but Deutsche Bank continues to do its part.  Morgan Stanley has followed strong performance with robust hiring, and Goldman has made is clear that hiring in their Strats group is a top priority.

Buy Side firms continue to hire top notch technical talent at premium prices.  The competition is clearly from large, public technology firms that can peel off a few more shares and make a young programmer very comfortable in one of the most expensive cities in the world.

One interesting development is that we currently have more Lead/Management roles than we’ve had in the past.  These roles continue to have a focus on hands-on skills.

The New Salary History Law

I commented in my last report that the new salary law, “is going to make my job harder.”  The reality?  Not at all.  It’s refreshing to talk compensation w/o relying on a person’s history, and firms have a clear idea of what they want to pay a given individual.  So far, so good.

Demand for infrastructure developers

We continue to see very strong demand for infrastructure developers.  Our top hedge fund clients are paying a significant premium (call me) for the best developers.  Financial knowledge?  Useful, but firms are generally not willing to pay a lot for knowledge they expect someone can learn on the job.  As for technical skill, the fact of the matter is that nobody believes that you can turn a good developer into a great developer, so the search for amazing developers continues apace.

Slow Contract Market

Anecdotal evidence suggests that the contract market is currently tepid.  A number of contractors we work with have reported that they’re not seeing a lot of opportunities.

Buzzwords: Blockchain, ML, NLP

Blockchain technology seems to be permeating everything these days, even recruitment.  The NY Times published a great article in January describing the technology and its potential to have a broad and fundamental impact.  I particularly like the description, “network of distributed trust” as a succinct and accurate description of the technology. Worth a read.

Machine Learning is everywhere these days, and we’re beginning to see opportunities in this and other AI disciplines.  We’re currently working on a position in Morgan Stanley’s Machine Learning group which applies AI and NLP technologies to revenue generating business cases.

More on Resumes

This is always a sore point for me, as I see so many bad resumes (this section was originally titled, “Your resume sucks”).  A resume will never be proof that you are the right person for the job, but it can be proof positive all too easily that you aren’t the right person.  Make sure to keep the reader’s perspective in mind and be sure that someone else has read it for content and grammar.

Opportunities

Please follow AffinityFin to be apprised of new opportunities.  Of course, the best way to learn about available opportunities is to email or call me directly.

Referrals

We have a referral program. If you refer someone who we place, we will gladly reward you for the referral.

Current Priorities

Buy Side

• Senior Java Developer – real-time PnL
• Junior Python Developer – research platform - new hedge fund within leading asset management firm
• C# and/or Java Developer – Contract/FTE – Risk attribution
• Junior-Mid C++ Developer – various functions
• Junior-Mid Java Developer – various functions
• Python Developer/Data Architect – Greenwich, CT
• C# UI Developer – Greenwich, CT
• C++/Python developer – algo trading infrastructure
• Python/Java/C++ Developer – Research
• Java Developer – Post Trade
• Python Developer – Data platform
• Java Developer – Core infrastructure services/libraries
• Quant Dev C++ - junior/mid/senior
• Java Developer – credit trading startup
• Portfolio Researcher - credit trading startup
• Javascript Developer – algo trading
• Python Systems Developer – Cloud based grid compute
• Python/Java Data Engineer – algo hedge fund
• Python Quant/Dev – algo hedge fund
• Real-time Java Developer – algo hedge fund

Sell Side

• NLP Engineer – Team lead
• Commercial SPG Desk Quant – focus on generating trade ideas
• Commercial Credit Desk Quant – focus on generating trade ideas
• Treasury Desk Strat
• Fixed Income Strats Developer –Java/Scala/Python/KDB/JavaScript – reports to the Desk
• Fixed Income Strats – Data Lead (ED) – oversee the data requirements of fixed income strats team globally
• Fixed Income Strats Hands-on Dev Manager (ED) – Lead a large group of developers supporting the trading desk
• JavaScript/AngularJS – full-time and contract
• Java/Scala Developer – Risk - Credit Trading IT/IRD IT
• Java Developer - Market Data - Credit Trading IT
• Java/Scala Developer – Valuation and Risk Infrastructure
• Java Developer – Secured Lending
• Java/Javascript Developer – Credit Risk C# Developer – Loans and Distressed Debt - Credit Trading IT
• KDB Quant/Dev – Fixed Income Strats
• DB2 Database Architect – CVA IT
• C++ Project Lead – CVA IT
• C++ Developer – IRD IT

Other Side

• Javascript/React Developer – Web dev Tools - Major Credit Card Company
• Javascript Developer – Trading Systems – Leading financial data platform

Contract

We always have a wide array of contract opportunities at good rates:

• Java
• Scala
• C#
• Javascript – Angular, React
• C++
• KDB
• Database – DB2

PETER'S Q4 2017 MARKET REPORT

2017 Q4 Summary

Happy New Year to everyone!

2017 is easy to summarize.  A robust first half was followed by a slow second half.  High expectations for the year turned neutral, as volatility reached all-time lows, and trading dried up.  Robust first half hiring turned into “hiring pauses” and then outright freezes. 

CBOE Volatility Index

We hear that budgets for 2018 are flat, so hiring will be the usual churn of bodies, not new initiatives, and likely not as strong as the beginning of 2017.

Hedge funds continue to have a tough time in this environment, but results are highly idiosyncratic.  We’ve seen a number of clients shut down, scale back, or reinvent themselves over the past couple of years. Per Hedge Fund Research, an estimated 222 funds closed in Q2, making it the seventh quarter in a row where funds closed than opened.  However, there are other signals that the buy-side environment is improving overall.

What’s Hot

We saw a significant increase in demand for JavaScript (AngularJS and React) and Python this year.  There’s nothing surprising about that given the overall technology trends highlighted in the following chart from Stack Overflow’s annual developer survey:

For our clients, the demand for JavaScript/web development experience stems from a rapid adoption of web technology for building front-ends.  As for Python, the demand is driven by data processing, data analytics, natural language processing (NLP), and data visualization as well as an embrace of the language for its productivity versus other languages.

As always, our clients seek outstanding developers regardless of the language of choice.  I had a hiring manager last week tell me that he doesn’t care if a candidate knows python and said he himself had never used it before starting at this current company.

Data Science

Big Data was the hot topic a few years ago, but now it is almost passé.  Data Science is the latest rage, and we see graduates pouring off campus with their targets set on Data Science roles.  I thought the below Venn Diagram was a clever and accurate visualization of the attributes of a Data Scientist and related roles.

While we are seeing high demand for data developers, specifically individuals who are adept at sourcing data (especially unstructured data) and implementing the entire data life cycle, we are not seeing a demand for Data Scientists.  My take is that there is a good supply of candidates seeking those positions, hence our services aren’t needed in that area.

Resumes…

Here’s my favorite resume tidbit from the past couple of months:

Reminder – it’s worth the time to make your resume good.  What does that mean?  Easy, do some research, look at examples, ask me, and have someone proof your resume, especially if you are not a native English speaker.  I see so many bad resumes, mostly from candidates who don’t put adequate effort into the task.  A mediocre resume says something about you.

Compensation Benchmark

People are always interested in knowing, what do hedge funds pay?  It’s an impossible question to answer as there are too many variables at play.  However, I can provide a benchmark.  This past year we’ve seen grads from top Comp Sci programs (BS) see offers in the neighborhood of $200k from leading hedge funds.  This example is not to say that all recent graduates who go to work at hedge funds make this kind of money.  On the contrary.  This benchmark is for highly desirable graduates from leading programs that the top hedge funds are actively competing for.

Arguing with Your Manager

Lazlo Bock was head of People Operations at Google for 10 years.  In his book, Work Rules, he discusses in depth how Google manages its people operation.  He offers some excellent advice for how to manage your career.  In the book, he talks about advocating for yourself and even arguing with your manager about your performance appraisal, though not to the point where you might piss your manager off: “And even if I don’t argue with my manager, he’s worried that I might.“  The point is, you need to be proactive about managing your career and keep an open dialogue with your manager regarding career advancement.

Predictions for 2018

Here is a thoughtful compendium of 50 predictions for 2018.  Also 10 Fintech Predictions.  Thanks to the Financial Revolutionist for their Weekly Briefing including these links and others.

The New Tax Law and “Velvet Layoffs”

This article predicts the FinTech landscape in 2028.  One prediction talks about the “Gig Economy” being replaced by the “LLC Economy.”  The recent tax legislation heavily favors pass-through entities, and we expect to see an increased number of professionals move to the corp-to-corp contracting model.  The article even predicts the facilitation of this setup for key employees in the form of “velvet layoffs” allowing senior executives to realize the tax benefits of operating as a pass-through entity.  Expect new regulations around pass-through entities for single employee companies.

Opportunities

Please follow AffinityFin to be apprised of new opportunities.  Of course, the best way to learn about available opportunities is to email or call me directly.

Current Priorities

Buy Side

• Senior React Developer – client facing applications
• Senior C++/FIX Developer – market data, OMS Connectivity
• Senior Java Developer – real-time PnL
• Senior KDB Developer/Strat – Surveillance technology
• Senior Python Developer – to build research platform for new hedge fund arm of leading asset management firm – python experience not required
• C# Developer Contract – Risk attribution
• Java Developer Contract – Risk attribution
• Senior Hands-on Java Lead -  Regulatory and Compliance technology
• Cloud Migration Specialist
• Elite C++/Python developers to help develop a new trading platform
• Expert C++ developers to help build multi-strategy trading infrastructure
• Post Trade Strat – C#/.Net developer for a top hedge fund focused on post-trade automation

Sell Side

• SPG Desk Quant – Leading investment bank
• Treasury Desk Quant – Leading investment bank
• Fixed Income Strats Developer – Crack development team embedded within the Strats team on the business side – Java/Scala/Python/KDB/JavaScript – language agnostic
• JavaScript/AngularJS – full-time and contract
• Scala developer – Contract, wealth management
• Java developer – Contract, wealth management

Peter's Q3 2017 Market Report

2017 Q3 Summary

We are seeing a normal, late-year hiring slowdown, as firms try to bring the ship in on budget.  There remain pockets of hiring and some very good opportunities.  One bank has frozen most hiring across IT, yet we have a strong mandate to fill roles in another division before the end of 2017.  So, if you’re looking at this time of year, there are still plenty of things to talk about.  Note too, that the process can take a long time.  If you are thinking about making a move in 2018, now is a good time to start.

NYC Salary History Law

New York City has passed a law prohibiting employers from requesting a candidate’s salary history.  The law goes into effect at the end of this month.  There’s a lot of information embedded in a person’s compensation history, so I think this law is going to make my job harder.  The law is going to significantly change the dynamics of the offer process. A key point is, “employers may use salary information that is volunteered by applicants.” It will be interesting to see how this plays out. 

What happened to HFT?

I take the articles on eFinancialCareers.com with a grain of salt.  However, this article (a year old) provides a good overview of the HFT industry players.  Re that grain of salt – “Reports suggest that ‘math nerds’ in the U.S. start on $550k at Two Sigma, however.” Er, no, they don’t.  Did some quant get that kind of package to start?  Sure, probably.  Is that the going price for “math nerds”?  Please.

Speaking of low-latency

This may be anecdotal, but a recent client of ours mentioned that he saw a 40% increase in solicitations when added low-latency to his LinkedIn profile.  To be sure, low-latency development skills (C++/Java) are in demand, and positions requiring those skills pay a premium. 

Increase in Python

We’ve seen a significant increase in demand for Python developers this year driven by data processing, unstructured data processing, data analytics, and natural language processing. Libraries pandas, numpy, and sklearn to a lesser extent are in demand.

The F*g Internet

What next? Fake interviews soliciting payments from unsuspecting candidates. 

Job Movement

I find it surprising that many candidates I talk to don’t realize how detrimental job movement can be to one’s candidacy.  Sure, there are good reasons for changing jobs, but there are very few circumstances where a series of 2 and 3-year job stints isn’t a bad sign.  Many of my more exclusive clients won’t even consider candidates who have a history of short job stints.  I presented a good candidate to one hedge fund last year, but the hiring manager wouldn’t consider him no matter what back-story I presented.  They wanted to see candidates w/ a good career arc, and argued that job stability shows grit. 

So what do you do if you don’t have the perfect resume (graduated from MIT in 2011, spent the next 6 years at first company showing advancement, now looking for your first change)?  Be well prepared to talk about the arc of your career and work w/ someone who can represent you appropriately to clients.

Hedge Fund Recovery?

There were fewer hedge fund closures the first half of 2017 compared to 2016 and overall assets are up.   The average return for the first half of the year was 5.4% compared to almost the same figure for all last year.  This bodes well for hiring.  However, according to Bloomberg Gadfly, this performance badly trails the indices.  If you listen to this episode of Freakonomics Radio, you’ll be hard pressed to put your money anywhere but an index fund.

Opportunities

Please follow AffinityFin to be apprised of new opportunities.  Of course, the best way to learn about available opportunities is to email or call me directly.

Current Priorities

We have somewhat of a different mix currently as we respond to the late-year hiring slowdown.

FinTech

• Java Developer (NYC or NJ) - algorithmic Java developer to be early employee of a promising startup

Buy Side

• C#/.Net Developer – Leading alternative investments firm
• Java/Python/JavaScript Developer (Irvine, CA)– Leading alternative investments firm is hiring a full-stack developer to help build a fund reporting package to be used by clients
• Machine Learning/NLP quant - C++/Python – leading asset management company
• Post Trade Strat – C#/.Net developer for a top hedge fund focused on post-trade automation
• Low Latency Java Developer – Exciting algo trading fund
• Technology Evangelist – “explore and evaluate new technologies for our evolving needs” (great role for a true technologist)
• Elite C++/Python developers to help develop a new trading platform
• Expert C++ developers to help build multi-strategy trading infrastructure

Sell Side

• Lead Business Analyst to run a data team in risk management
• SPG Desk Quant – Leading investment bank
• Fixed Income Strats Developer – Crack development team embedded within the Strats team on the business side – Java/Scala/Python/KDB/JavaScript – language agnostic
• JavaScript/AngularJS – full-time and contract
• Scala developer – Contract, wealth management
• Java developer – Contract, wealth management

End of Year Outlook

• The market remains good.  We continue to see new opportunities on a regular basis.  Contact me and let me know what I should be on the lookout for to help you advance your career.

PETER'S Q2 2017 MARKET REPORT

2017 Q2 Summary

Summer has arrived, and the market has slowed.  Walls Street’s Q2 results are expected to be down significantly. However, if there’s a silver lining to the news, it’s that nobody seems panicked.  Yes, budgets are being reevaluated, and hiring has slowed.  However, in prior years we’ve seen hiring shut down hard and fast when results weren’t good.  This year firms continue to hire, albeit more slowly, and the budget reassessments are a real exercise, not an excuse to stop all hiring for an extended period. 

Buy/Sell-Side Rotation

I mentioned last quarter that it felt like the market was starting to favor the Sell side for career advancing opportunities.  While anecdotal, I did speak to a someone who recently made the switch from a large hedge fund to a leading investment bank.  He reported that he’s very happy in his new IB job and prefers it to his previous hedge fund position.

Age Spots

Ageism is illegal – and very real.  I talk to people on an almost daily basis who are struggling to find job due to their age.  My advice?  Keep your technical skills sharp, consider contracting (a double-edged sword, since you’ll be even older when you need to find your next contract), and/or consider being your own boss.  Age was certainly a factor when I pivoted from my previous career into recruitment.  A good friend of mine recently left JP Morgan and is heading to NC to open his own franchise business in a completely unrelated field.  See 2017 Q1, “Have you thought about doing something else?”

Big Data

Seen on LinkedIn recently:

The sentiment rings true, as roles we see involving Big Data usually have quite a bit of ambiguity around the Big Data component of the position.

Goldman Diversity

In this business, I look at a lot of profiles.  One thing stands out as I peruse LinkedIn profiles:  Goldman Sachs is very committed to diversity.  I see far more women and minorities in junior positions at Goldman Sachs than any other investment bank.  Good for them.

Hedge Funds faced net redemptions in 2016

Hedge funds had their 3rd ever year of net redemptions in 2016.  That hasn’t stopped a number of new funds from opening. Here’s one CIO’s perspective on what you need to work at a hedge fund these days.

The 2 biggest job interview mistakes people make

This article is titled “The 2 biggest job interview mistakes young people make.”  I changed it slightly, as I see candidates of every age make these 2 mistakes frequently.  I give people a lot of interview advice, and I’ve been guilty myself of not stressing to people that they follow-up after the interview.  Frequently hiring managers are on the fence about a candidate.  Receiving a thank you note can make a big difference, especially when the vast majority of interviewees don’t bother these days.

Useless job interviews

I always stress to candidates that they need to put themselves in the interviewer’s shoes.  Understanding what the interviewer wants to hear is half the battle.  This NY Times article describes how poor people are at evaluating individuals based on subjective criteria.  Of course, here we are concerned with technical and quantitative positions, and interviews are heavily weighted towards quantitative lines of questioning, which are a much better predictor of performance.  This article is useful for both interviewers and interviewees to avoid the pitfalls of evaluating “soft skills.”

Pleased to be included in Business Insider

I was recently included in Business Insider's "We asked 6 Wall Street recruiters about the hottest trends in hiring".

Contract rates are going up

In the past few months, we have seen last year’s contract rate reductions reversed.  In addition, there is clear evidence of rates going up, as we frequently see contracts posted at one rate, then revised up in subsequent weeks. 

Current Priorities

Javascript and AngularJS in particular.  One hiring manager told me last week, “We’ll pay whatever it takes.” In addition, he trimmed his skill requirements.  His description is a good overview of what nearly all our hiring managers are looking for:

I’m looking for someone smart.  I don’t actually expect that the person has all of listed skills – that’d be impossible.  I just need someone who can demonstrate he/she is willing and smart enough to pick it up.

Buy Side

• Data Strat – A sophisticated data oriented developer (Python, C#)
• Labs Engineer – “explore and evaluate new technologies for our evolving needs” (great role!)
• Senior KDB developer
• Elite C++/Python developers to help develop a new trading platform
• Low-latency C++ developer for expanding prop shop
• Expert C++ developers to help build multi-strategy trading infrastructure

Sell Side

• JavaScript – see above, opportunity for top developer to move to business side/strats team
• Java Dev Lead/Manager for greenfield development of new risk/stress testing platform
• Java/Web (AngularJS) developers - greenfield development of new risk/stress testing platform
• Data Modeling/Warehousing expert – Executive Director - Finance IT – requires significant experience with Finance department and sub-ledger accounting
• Dev Lead w/ hands-on .net Web Services or AngularJS – Wealth Management
• JavaScript/AngularJS – full-time and contract
• Java Algo trading developer, Equities - Contract
• Java Algo trading developer, Fixed Income Credit - Fulltime
• Senior Scala/Java developer for Credit/Rates/FX cross asset risk implementation – Fulltime
• Scala developer – Contract, wealth management
• KDB developer for equity market data – Contract
• Treasury Quant – front-office quant to work on funding optimization issues

A Gifted Product Manager Looks at His Profession

This is a beautiful essay, thoughtful and jargon-free, on the the craft of product management by Gannon Hall, Chief Product Officer at Spring.

Pleased to be included in Business Insider

Pleased to be included in Business Insider's "We asked 6 Wall Street recruiters about the hottest trends in hiring".

Peter's Q1 2017 Market Report

2017 Q1 Summary

Hiring has continued apace in 2017.  In some ways, it feels like the market is leaning back towards the Sell-side for career advancing opportunities.

Buy-side hiring is idiosyncratic depending on the performance of each company, but the general trend is down as hedge funds continue to face headwinds.  Eton Park Capital’s recent announcement that they are shutting down after a single down year is telling. 

Peak in regulatory hiring

Hiring for regulatory related positions has been one of the few bright spots since the Credit Crisis.  However, regulatory related hiring has likely peaked as much of the work has been done, and the current administration looks to roll regulations back.  AML/KYC expertise continues to be in demand.

Web tech replacing C# for front-ends – it’s official

I’ve never seen a technology replace another so quickly.  JavaScript and related technologies have supplanted C# GUI’s.  Most groups we work with are actively moving to web-based front-ends or thinking about how to move their front-end architecture in that direction. We currently have very few C# front-end positions and no end of demand for JavaScript developers.  AngularJS is in high demand. 

How to get ahead

Theo Epstein became baseball’s youngest GM ever at the age of 28 in 2004.  He has since broken both Boston and Chicago’s championship curses.  I thought this advice from Theo was incredibly insightful: "Whoever your boss is, or your bosses are, they have 20 percent of their job that they just don't like.  So if you can ask them or figure out what that 20 percent is, and figure out a way to do it for them, you'll make them really happy."

What does it take to get hired by an ultra-exclusive group?

This article outlines the screening process and expectations for Goldman’s exclusive Strats group and touches on the financial rewards that can be realized by top producers in that group.  In our experience, it’s quite accurate.  Top hedge funds have similar if not higher expectations, and in some cases the process is significantly harder than Goldman’s. 

Note that not all Strats groups are created equal.  This article is required reading if you read the previous one.

I find it interesting that in 2017 to date, the response rate from Goldman Sachs employees to our LinkedIn outreach far and away exceeds that of any other company:

Have you thought about doing something else?

We’ve commented many times that the market is very difficult for mid-senior technology managers in capital markets.  An executive director at a major Japanese bank was recently downsized.  The first thing his outplacement consultant asked him was, “Have you thought about doing something else?”  This segment continues to be extremely challenging.

Current Priorities

Buy Side

• Senior data web apps developer
• Elite C++/Python developers to work at one of the industry’s most prestigious funds
• Low-latency C++ developer for expanding prop shop
• Junior C# developer for desk-facing dev team
• Expert C++ developers to help build multi-strategy trading infrastructure

Sell Side

• Team lead, hands-on KDB developer for FX eTrading - Fulltime
• C++ developer for Equities Market Making Desk (reports to desk)- Fulltime
• Java algo trading developer, Equities - Contract
• Java algo trading developer, Fixed Income Credit - Fulltime
• JavaScript contractor for Credit Strats group, FID Credit Complex - Contract
• JavaScript developer for Wealth Management client applications - Contract
• JavaScript developers for SPG applications - Fulltime
• KDB developer for equity market data - Contract
• C++ developer for CVA IT – fulltime and Contract
• SPG analytics C++ developer - Contract
• C# developer for Credit eTrading applications – Fulltime
• Senior Scala developer for Credit/Rates/FX cross asset risk implementation - Fulltime
• SQL Server Database developer for Wealth Management – Contract
• Java developer FX IT – Fulltime
• DB2 developer, Securities Lending – Contract
• Java developer, Securities Lending – Contract

Peter's Q4 2016 Market Report

2016 Q4 Summary

Happy New Year to everyone!

This year marks a divergence from the cycle we’ve seen in recent years, namely hiring petering out in the fourth quarter with blanket hiring freezes going into effect.  In fact, we have continued to see offers go out late into December.  This activity doesn’t mean that the market is robust – the European banks continue to shrink their footprint in the US and remain on the sidelines.  However, I think it signals a return to normalcy where firms are hiring according to need, and the yearly cycles that were exacerbated by a poor business climate are no longer dominant.  We expect Q1 hiring to be brisk.

What (still) Sells

Hands-on skills and Subject Matter Expertise continue to be critical in this hiring environment.  That hasn’t changed since the Credit Crisis.  There’s an almost insatiable market for the best developers, even at the top end of the market.  A very well compensated technologist with whom we work told me recently that he was surprised at how good the market was for someone at his level.  It’s worth noting that our Buy side clients are clamoring for developers, not quants.

A very thoughtful MD recently gave me the following feedback on someone he had worked with, “Kind of a jack of all trades, master of none, which in 2016 is hard.” 

Comp

Base salaries are rising, albeit slowly.  While incentive compensation remains a big part of how the industry pays people, a variety of forces (tech industry including startups, European banks, loss of faith in bonuses) continue to push base salaries up.  We have seen more than one firm adjust base bands this year.  Note that the market remains tepid, and people moving laterally are more likely to see a 10% increase than 20%, which used to be the norm.  Wondering where you stand on comp?  Call me.

“side code projects”

I saw this on LinkedIn the other day and thought it was great “No, I have no side code projects to show you.”  Anyone who’s been on a tech interview in the past few years can relate to this article.

Direction for Hedge Funds

Who am I to say where hedge funds are going?  I wouldn’t bet against Manoj Narang, however.  What he says in this interview sure makes a lot of sense.  I don’t think you have to wonder who the smartest guy in the room is when he’s present.  Also, here’s a follow-up article on Quantopian, a fascinating crowd-sourced fund that may disrupt the industry, through its ability to attract “Young talent.”

Lighter Note

I’m a huge fan of The Moth.  This story is perfect for this crowd “Data Mining for Dates.”

Current Priorities

Buy Side

• Senior data warehouse developer
• Elite C++/Python developers to work at one of the industry’s most prestigious funds
• Low-latency C++ developer for expanding prop shop
• Java or C# developer to work on Risk and Performance Attribution system
• C# contractor
• Hands-on dev manager for Trade Flow group
• Junior Python, AWS, JavaScript developer – 2+ years’ experience

Sell Side

• Equities division seeks C++ developer for algo trading
• Desk Strat – Credit Algo/eTrading
• C++/Java/Scala developer for fixed income model integration
• Market Risk SME Project Manager
• Java algo trading developer – Equities
• Java algo trading developer – Fixed Income Credit
• JavaScript contractor for Credit Strats group
• KDB developer for equity market data

Peter's Q3 2016 Market Report

Q3 surprised us with a strong uptick in hiring, led by Morgan Stanley.  After a couple of good quarters, the firm realized that last year’s cuts in Fixed Income were too aggressive, and we saw significant hiring on all fronts, both fulltime and contract positions.  The activity continues as I write this report.  Hiring managers are very actively seeking to fill their open positions, since it won’t be long before the inevitable end of year freeze sets in.  There’s a race to fill that has us scrambling.

More Algo Trading

For many in this industry, Algo trading is the perfect intersection of technology and markets.  I talk to many developers who are targeting positions that involve algo/systematic trading development.  The good news is that we are seeing more and more such roles.  Regulations are driving fixed income and derivatives trading to electronic exchanges, and all of the major players are building systems to make markets electronically.  Mind you these are some of the more elite development and quantitative groups, so it remains difficult to land an offer in this area.

Anecdotally, I heard that at the biggest bank, algos significantly outperformed humans around the BREXIT event.

Hedge Fund Struggles Continue

Many hedge funds continue to have a hard time with their returns.   Some are having to cut fees to attract/keep investors.  A well-known fund in Greenwich was forced to significantly reduce head count last month.  Still, the returns are quite varied, and we continue to see hiring at a number of hedge fund/prop trading clients.

Coding Boot Camps

Coding boot camps have been around for several years now and have exploded in popularity.  This article from 2013 already lists about 100 such outfits.  I hadn’t seen many resumes from graduates of these programs, until we recently posted a junior Python/JavaScript position.  This JD appears to be the perfect bait for boot camp graduates – a junior role requiring the two most popular boot camp languages.  The resumes from these candidates all look the same (amazingly so) – one page, very modern, a list of the latest JavaScript and Python technologies, a reference to their github – and no real experience.

Does anyone have experience with these outfits?  Attending, hiring from, instructing at?  If so, I’d like to hear your thoughts.

Computer Science Master’s Degree for $7000

This just in (today’s NY Times) – Georgia Tech, one of the top 10 computer science programs in the country, is offering a masters in Computer Science for only $7000.  The school is offering the program at cost.  It sounds like a very effective and innovative program.  I would highly recommend looking into this program.

Current Priorities

Buy Side

• Quant to develop an optimizer in R for equity portfolio construction
• UI developer (.net/DevExpress/WPF) for risk management and trading limits applications – quant team
• UI developer (.net/WPF/web) for middle office applications
• Hands-on dev manager for Trade Flow group, preferably with Murex experience
• Senior PM to focus on fixed income margin, clearing, settlement initiatives
• Junior Python, AWS, JavaScript developer – 2+ years’ experience
• A large hedge fund needs a QA Lead (still)
• A large hedge fund needs a DevOps professional to support a critical enterprise data warehouse

Sell Side

• Executive Director – Wealth Management Strats – C++/C# developer with significant expertise in grid computing, model integration, and client-server GUI applications for trade analysis
• Desk Strat – Credit Algo/eTrading
• Desk Strat – various, for diversity initiative – call me
• C++/Java/Scala developer for fixed income model integration
• WM Strat - C++ developer/quant for fixed income model integration
• Equities division seeks C++ developer for algo trading
• Market Risk SME Project Manager
• Java algo trading developer – equities
• Java/Scala algo trading developer – fixed income - credit
• Web/JavaScript developer for risk, scenario viewers – new strategic infra - fixed income
• KDB developer for equity market data
• C# developer - various

Technology/Fintech

• A Fintech company seeks a Javascript/HTML5/AngularJS developer - Remote position

Lighter Note

Also from today’s NY Times: Tips for Landing a Career at Your Father’s Software Company.

This Month's Best Resume Line

We review hundreds of resumes every week here at Affinity Resource Group, from International Math Olympiad medal winners and Rhodes Scholars and Stanford Summas.  But no line on any resume we saw this month stood out more than this:

I've seen Zoolander 87 times and counting, but I have yet to see the sequel.

Peter's Q2 2016 Market Report

Opportunities

We are moving to Twitter to keep people apprised of interesting job opportunities. Please follow AffinityFin.  As always, we have an interesting list of current opportunities.  Details below.

2016 Q2 Summary

Q2 was largely status quo as firms continue to watch budgets carefully and hire only in areas of extreme need.  We frequently see openings being filled by internal transfers.  An MD at Barclays told me last week that he is under a lot of pressure to fill his open positions by transferring employees who are looking for internal mobility. 

Q2 results aren’t out yet, but I’ve heard encouraging things.  Q1 was terrible, and banks have resized at this point, so there’s cautious optimism for a healthier Q2.  The head of talent acquisition at a major investment bank told me a few weeks ago that he sees hiring picking up in the near future.

Management Compression

We’ve commented in previous reports about the reduction in the management ranks.  I’ve heard that a very large bank is tracking the ratio of managers/reports with a target ratio of 8:1. That’s a large number, as anyone who has managed a team knows.  There’s also a required reduction in the number of layers below the CTO.

Continued Pressure on Contract Rates

We saw contract rates cut across the board at several large investment banks over the past six months.  These cuts were generally 5-10%.  I was informed that Citi cut contract rates in some areas 20% in April.  Really?  That seems like an open invitation for your better people to leave as soon as possible.

WFH

When I was still working for a bank, the “WFH” (working from home) emails were a daily phenomenon and increased steadily over the years.  One bank recently checked badge swipes for the employees in their IT division.  They found a surprisingly low % of employees were actually on premise on a given day.  Interesting from a number of perspectives.

Visas

We recently started working with a very large eCommerce startup.  I was surprised and pleased to learn that the company starts green card processing within a month after start date.  Smart move when you’re competing for the best technical talent.

Salaries outside of Wall Street

Ever wonder how people get paid at the big technology companies?  This blog provides some insight.

Golden Age of Fintech

NY surpassed Silicon Valley in venture funding for Fintech for the first time in Q1 2016.  The phenomenon is driven by more collaboration with financial institutions. Interesting take here including, “Finance will be the most disrupted industry in the next 10 years” and “There are more than 8,000 fintech start-ups just in the U.S. today.”

Crowd Sourced Hedge Fund

http://news.efinancialcareers.com/uk-en/249108/meet-man-leading-team-80000-quants/ (some members of this distribution list have participated and done well).

Intangibles

Our focus is technical disciplines, and often the focus is on the challenges of technical interviews.  What else are hiring managers looking for?  Asking questions and the ability to navigate ambiguity are two key traits.

Julia

Is Julia the next language to learn?

The current language to learn is javascript.  Almost every HM I talk to asks for javascript/HTML5 developers.

Current Opportunities

Great roles, high standards -

Buy Side

• A storied hedge fund in Greenwich seeks a senior trading system dev/architect, C++/Python – green field development to build a new systematic trading platform
• A very exciting prop trading firm needs a Network Architect and a Systems Engineer
• A large hedge fund needs a QA Lead as well as a senior DevOps professional
• A very sophisticated technology team at a major hedge fund seeks a super strong developer with good knowledge of markets and trading technologies
• A dynamic hedge fund is seeking talented C++/Python developers for Quant/Dev roles
• A leading HFT prop firm seeks C++ developers with experience building ultra-low-latency systems
• A leading hedge fund is hiring a dev/quant for analytics development – 1 FX expert, 1 Commodities expert

Sell Side

• A foreign investment bank from the Southern Hemisphere is seeking a dev/quant for its Commodities Index desk – VP level, sits on the desk
• A leading investment bank is seeking a hands-on java developer for a VP position in Rates IT
• A foreign IB seeks a very strong, VP level, java developer for their equities vol trading IT team

Technology/Fintech

• A leading ecommerce startup ($500+mm raised) seeks talented developers
• A Fintech company seeks a java/scala developer with good knowledge of bond pricing - REMOTE position
• A Fintech company seeks a Javascript/HTML5/AngularJS developer - REMOTE position

As always, don’t hesitate to call if you are interested in discussing these observations, the current market, or how we can help you advance your goals.

The current language to learn is javascript.  Almost every HM I talk to asks for javascript/HTML5 developers.

Current Opportunities

Great roles, high standards -

Buy Side

• A storied hedge fund in Greenwich seeks a senior trading system dev/architect, C++/Python – green field development to build a new systematic trading platform
• A very exciting prop trading firm needs a Network Architect and a Systems Engineer
• A large hedge fund needs a QA Lead as well as a senior DevOps professional
• A very sophisticated technology team at a major hedge fund seeks a super strong developer with good knowledge of markets and trading technologies
• A dynamic hedge fund is seeking talented C++/Python developers for Quant/Dev roles
• A leading HFT prop firm seeks C++ developers with experience building ultra-low-latency systems
• A leading hedge fund is hiring a dev/quant for analytics development – 1 FX expert, 1 Commodities expert

Sell Side

• A foreign investment bank from the Southern Hemisphere is seeking a dev/quant for its Commodities Index desk – VP level, sits on the desk
• A leading investment bank is seeking a hands-on java developer for a VP position in Rates IT
• A foreign IB seeks a very strong, VP level, java developer for their equities vol trading IT team

Technology/Fintech

• A leading ecommerce startup ($500+mm raised) seeks talented developers
• A Fintech company seeks a java/scala developer with good knowledge of bond pricing - REMOTE position
• A Fintech company seeks a Javascript/HTML5/AngularJS developer - REMOTE position

As always, don’t hesitate to call if you are interested in discussing these observations, the current market, or how we can help you advance your goals.

Peter's Q1 2016 Report

We are moving to Twitter to keep people apprised of interesting job opportunities. Please follow AffinityFin.  In the next few months we will work on creating a number of more directed feeds to accommodate people’s interests.

Current Opportunities

A rather varied roster currently:

Buy Side

• A very exciting prop trading firm needs a Network Architect
• A large hedge fund needs a QA Lead as well as a senior DevOps professional
• A leading hedge fund is hiring a senior Project Manager with excellent knowledge of Fixed Income markets and thorough knowledge of how financial firms operate
• A large hedge fund seeks well rounded C# developers for Post Trade technology
• A leading HFT firm is seeking talented C++ developers to team with a quantitative trading team
• A dynamic hedge fund is seeking talented C++/Python developers for Quant/Dev roles
• A prop trading firm is seeking talented C++/Python developers for Quant/Dev roles
• A leading hedge fund is making a large push into Commodities markets.  Priority hires:

o   Dev Lead – must have experience with OpenLink’s Endur platform

o   Developers – must have experience with OpenLink’s Endur platform

o   Business Analysts – must have experience with OpenLink’s Endur platform

Sell Side

• A leading investment bank is seeking a junior quant for its Commodities Index desk
• A foreign investment bank from the Southern Hemisphere is seeking a dev/quant for its Commodities Index desk – VP level, sits on the desk
• A leading investment bank is seeking a Rates/Treasury Quant – VP level
• A leading investment bank is seeking technical Business Analysts with good knowledge of the Prime Funding Business

Fintech

• A capital markets consulting firm needs .Net developers with knowledge of fixed income PnL systems as a priority
• Same firm is looking for a Scala lead engineer/architect

2016 Q1 Summary

The only question regarding the current market is whether we call it bad, awful, or grim?  In many respects it’s pretty grim:

• Q1 worst since 2009. “Global IB revenue totaled $12.8bn in 1Q2016, down 36% from 1Q2015 ($20.0bn). Revenue across all products dropped but fees from ECM tumbled 55% year‐on‐year. M&A, Syndicated Lending and DCM revenues fell by 24%, 30% and 32% respectively, making 1Q 2016 the lowest quarter for revenue since 1Q 2009” Dealogic.com
• 3 bad quarters in a row
• Wave after wave of layoffs

o  Morgan Stanley, Bank of America, Credit Suisse, Nomura, Citigroup, Goldman, Barclays

• Firms have determined that the markets for trading, particularly fixed income, have shrunk and won’t recover any time soon (see MS 25% cut across all of fixed income in Dec)

There are many headwinds, and it’s hard to see the market rebounding.  However, one thing we can be sure of is the cyclical nature of the market, and even as the news is bad, we are already seeing an uptick in hiring activity.  Further, this audience is heavily focused on technology and quantitative professionals, and the broader market remains robust for those disciplines.  Nobody in these fields should worry.  Our own business has pivoted in recent months to be more focused on hedge funds and prop trading firms.  Meanwhile, we are looking at more traditional asset management firms, private equity, and Fintech.

Here is the boots on the ground picture of the market:

• Several large banks implemented firm hiring freezes in Q3 of 2015:

o  No replacement hires

o  No new hires to tackle new regulatory projects

o  No hires for new business initiatives

• Now 1-2 quarters after the layoffs, we’re seeing things ease:

o  Contract hires in critical areas

o  Replacement hires are being made

o  Strategic roles are being opened

• Hedge Funds / Prop Firms have had a tough couple of years, but there are bright spots

o  Some hedge funds are hiring

o  The bar is high – these firms are being very selective

While hiring is currently not robust by any measure, it does seem to have bottomed out.  In the past week alone we added five very interesting positions to our roster.  While anecdotal to a degree, this does seem to indicate some life in the market.

Contract Rates Are Down Again

In Q2 last year I wrote, “Increased contract rates!”  That didn’t last long.  We have seen mandated 5-10% contract rate reductions across the board at several large firms.  Many contractors have been cut in recent months, so the few contracts currently available are being filled at lower rates.

Your Dream Job

I talk to so many technical people who dream of being on the front lines, writing algos that will make them a fortune.  But I warn people that such roles are very rare.  These positions are the tip of the iceberg, while the rest of the financial IT community is coding the plumbing that makes everything work.  A recent article in the NY Times once again describes the rise of the techy trader.  “A New Breed of Trader on Wall Street: Coders With a Ph.D.”  Didn’t we read this story twenty years ago? Anyway, there was mention in the article of Yaron Minsky, CTO of Jane Street and an embedded video link, Caml Trading.  I generally don’t have the patience to watch a 3 minute YouTube video, never mind a 70-minute lecture.  In fact, I listened to the entire video and then found another hour long presentation by Minsky.  He’s a very compelling speaker, and his exploration of the technology choices made by Jane Street are fascinating.

In Case You Missed It

Pure FinGeek fun, another article courtesy of the NY Times:  In ‘Star Wars,’ Was the Death Star Too Big to Fail?

As always, don’t hesitate to call if you are interested in discussing these observations, the current market, or how we can help you advance your goals.

Peter's Q4 Report

We are moving to Twitter to keep people apprised of interesting job opportunities. Please follow AffinityFin.  In the next few months we will work on creating a number of more directed feeds to accommodate people’s interests.

Q4 Summary

2015 was a very interesting year, indeed.  The first half of the year looked like a return to better times with robust Q1 and Q2 earnings leading to strong hiring and a general sentiment that the industry was returning to a more normal rhythm not seen since the Credit Crisis.  And then came Q3. Very weak Q3 earnings led to a rapid reassessment of the industry, and a quick capitulation for some banks that recognized that the fixed income market has shrunk significantly and won’t return to previous trading levels any time soon. Anemic ROE numbers were the result of fixed income businesses that were too large to support reduced revenue.  Morgan Stanley had the worst Q3 of the major banks and was quick to act, reducing headcount by 1200 heads in fixed income, a 25% reduction.  We’ve also seen recent layoffs at Credit Suisse, Bank of America, and Citigroup, and you just need to google bank layoffs to find discussions of serious layoffs planned at many other leading institutions, especially the European banks.

The Buy Side had a challenging year as well, though given the nature of the business, the results were much more varied.  This NY Times article provides a good summary of the challenges faced this year for hedge funds.  There’s some optimism that the recent Fed rate increase will bring a better environment for many funds as it spurs an increase in volatility.

New Golden Era?

Goldman on the other hand insists it won’t cut staff as outlined here in reaction to their 3rd Quarter results.  And while the Fixed Income market has shrunk, the European banks have been steadily pulling out of investment banking, leaving the smaller market to fewer NY based investment banks.  This pullback sets the stage for a new Golden Era of Wall Street for US banks according to William Cohan of Bloomberg. 

Lack of Senior Hires

The compression in management ranks continued earlier this month at Bank of America.  I heard but have not confirmed that the layoffs were all Managing Directors and Executive Directors.  Even more telling is this recent factoid from Mike Whittaker at Citigroup.  Within Citi’s IT division numbering 45,000 people, Citi hired only one Director and no Managing Directors over the past 2 years. A senior Director at Citi recently described Citi’s approach to executing big technology initiatives as, “Figure out the solution and PM it to completion.”

Fintech!

Disruptive technology is potentially around the corner for many areas of financial services.  There are many players and the banks themselves are investing heavily in technology to avoid being displaced by upstart technology firms.  While jobs have been reduced in some areas of trading systems, financial technology is a burgeoning field.

• Regarding the investment in technology, ex-Barclays CEO Anthony Jenkins:
  • “banks are facing an ‘Uber moment’ that could reduce headcount by up to 50%.”
  • “The incumbents risk becoming merely capital-providing utilities that operate in a highly regulated, less profitable environment"
• Banks aren’t standing still:
  • “Fifty-eight percent of senior bankers polled by Temenos (a banking software company) said they plan to spend more on IT this year, the highest percentage since the survey began in 2008.
  • Just under one-third of Goldman Sachs' employees are now engineers — 11,000
• If you don’t know what Blockchain is (the technology underlying Bitcoin), it’s worth looking into. See: Blythe Masters Tells Banks the Blockchain Changes Everything.  Fascinating article, and a good look into how technology will change banking.

Peter's Q3 Report

2015 Q3 Recap

The third quarter of 2015 differed from 2014 in that both fulltime and contract hiring continued strongly at most firms through most of the quarter.  In fact, at least two major investment banks conducted special hiring events to focus attention on their hiring needs and to fill as many open positions as possible before the end of the year.  IT departments have run lean for the past few years with most hires focused on RTB (Run the Bank) and MCB (Mandatory Change the Bank = regulatory/compliance) initiatives.  Firms are seeing more optimistic budgets and are hiring to address a large backlog of strategic work. That being said, as we enter the 4th Quarter, most of the big banks have frozen hiring, but there’s nothing unusual about hiring freezes at this time of year.

Treasury and Margin

Companies are investing in technology to manage their balance sheet and margin requirements more efficiently.  The dollars involved are huge, so building systems that risk manage more effectively and compute margin more accurately can add significant $ to the bottom line.

Direct Submission

Ever wonder why your resume rarely gets a response when you submit it directly through a company’s job portal?  We had an interesting insight into being on the other side of the submission process.  Due to misconfiguration of our job portal at a major investment bank, we saw a subset of the direct submission activity.  We observed that one individual had submitted his resume to over 500 posted positions.  Clearly separating the wheat from the chaff is a non-trivial challenge.

Trends

The vast majority of the development positions we are asked to work on focus on five main languages: Java, C++, C#, Javascript, and Scala.  Scala is clearly on the upswing as functional languages are becoming more popular driven by the explosion in parallel processing.  Javascript continues to grow in popularity as it is the language of choice for modern front-ends. 

Be sure to look at the scale of the Y axis when reading the charts below.

Apache Spark

One technology that is seeing rapid adoption is Apache Spark.  If you want to be on trend, gaining experience with Scala and Apache Spark is a excellent way to go.

Peter's Mid-Year Report

Here's Affinity Resource Group Partner Peter Wagner's 2015 Q2 report on current trends in the front-office financial services IT job market:

The market had tailed off in the first quarter as firms were absorbing a poor 4th quarter of 2014.  Now we know that the first quarter of 2015 was quite strong.  Profits from trading were up considerably in the 1st quarter.  While the 1st quarter is generally strong, the results were especially impressive in light of the fact that most banks have reduced their risk-taking activity.  A senior executive at Barclays told me that the Rates desk is up 250% year over year and these results alone are bolstering the firm’s outlook.

Increased contract rates!

Finally the market seems to have responded to the supply/demand imbalance for talent.  For the past couple of years, rates didn’t really change despite a strong demand for talented developers and SME’s in critical areas.  Steady pressure on costs kept rates steady.  However, in the past couple of months, I have seen a regular supply of contract positions at posted rates that are significantly higher than anything we saw last year.  The uptick appears to be a combination of the desire of aggressive managers to onboard talent while the hiring window is open, coupled with a strong first quarter that has budget managers comfortable signing off on higher rates.  If you feel you took a contract below the current market, now might be a good time to evaluate your options.

Where’s the money?

From this seat, we continue to see banks investing in Risk, Compliance, and strategic technology aimed at reducing overall costs.  Studies like the McKinsey report quoted below have senior management very focused on management of IT initiatives and standardization:

McKinsey: “We found that certain categories of IT management capabilities show a strong correlation with lowering spending on day-to-day IT operations. The correlation was particularly strong for cost control, rigorous project prioritization, advanced sourcing practices, and relentless standardization of IT infra­structure and application architecture. Banks that manage these areas well spend, on average, 41 percent less on day-to-day IT operations than banks that have self-reported deficiencies in these fields (Exhibit 2).

GECC

GECC made big news in April announcing the divestiture of the majority of its GE Capital operations.  While Jack Welch recognized the money that could be made by leveraging GE’s enormous balance sheet, Jeffrey Immelt has in turn realized that the cost of doing this business is too high in the current regulatory environment.  

“The move announced Friday reflects the shifting landscape of the financial world, especially for the largest players. They face greater regulatory scrutiny and calls from analysts and investors to slim their operations or break up. Some are shifting their focus to areas like wealth management as traditional activities like trading prove less profitable. It is no surprise that G.E. decided to re-evaluate its role in this ecosystem.” NYTIMES

During my time working at investment banks, I was always amazed by the infrastructure that was required to support the trading operations.  No matter how many associated groups/functions I was aware of, I never stopped learning about new downstream groups performing additional critical functions.  It gave me a tangible impression of how much money a successful trading desk can generate.  However, the news from GECC seems to underline the (obvious) fact that there’s a limit to what these businesses can support.

Deutsche Bank co-CEO’s step down

The news out of DB of their co-CEO’s stepping down is another manifestation of the pressures on investment bank profitability in the current market.  Anshu Jain was the biggest proponent of continuing to invest in DB as an investment bank that could compete with the likes of Goldman Sachs and JP Morgan Chase, while all other European banks retreated.  While DB is reducing its investment banking operations, it remains to be seen whether they join their European counterparts in a full-fledged retreat.

Current Opportunities

The list has gotten so long it’s hard to distill.  If you are interesting in discussing the current market, please give me a call. 

Buy Side

-    Senior java developer, ED Level – Fixed Income Derivatives Trade Processing

-    Senior C# developer, ED Level to build a brand new margin system for a major hedge fund

-    Broadly skilled C# developer to lead the IT effort of a relative value prop trading desk at a mid-sized hedge fund.  You will sit on the trading desk with the traders and quants and build whatever technology they need to conduct their business.

-    Very skilled C++ developers – low-latency systems, real-time market data, etc.

-    Many opportunities for strong C# developers with good experience in Microsoft stack for a variety of hedge fund roles

Sell Side

-          Very strong demand for BA’s and PM’s in Risk and Compliance

o   A rare ED Level role for IHC CCAR Program Manager

o   Broad opportunities in Market Risk/Credit Risk/Operational Risk

o   Multiple opportunities in IHC/FBO

-          Broad demand for all kinds of developers – Java, Scala, C#, C++, Javascript

o   Both full-time and Contract hires – more full-time positions currently than we’ve seen in recent years

o   More and more demand for Javascript

Don't hesitate to call if you are interested in discussing the current market.