A question for any sell side bond traders out there: I’m considering from going to the buy side to the sell side where pay would be P&L production based versus salaried. Does anyone get paid under a similar arrangement? If so, what’s your take-home of your P&L? what’s the size of your book? And how often do you turn it over?

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A buddy of mine made that switch from buy side to sell side and is on a P&L-based comp model now. From what he shared, he takes home about 15% of his P&L after desk costs. His book’s usually around $100M, and he turns it over every couple of weeks, depending on market conditions. He said it’s definitely higher pressure, but the upside can be worth it if you’re confident in your risk-taking and relationships.

FM1 - thanks for the info. 15% with a $100 mil book sounds reasonable. My book would be quite a bit smaller so I wonder if 15% on such a small line is worthwhile. Each mil of P&L would be $150k, but that’s a lot easier to do with $100 mil versus < $20.

Switching from buy side to sell side can be a big shift, especially when moving from a salary to a performance-based structure. The compensation can be highly variable, often depending on the size of your book, how frequently you turnover, and the specific markets you're working with. It can be very rewarding if you're successful, but there's more risk involved. Have you considered how this change might impact your work-life balance or financial stability?

FA1- thanks for the input. Certainly have thought about those things. That’s what brought me to the fishbowl, trying to hear the experience of others. It would be a significant change for sure. I’m well aware of the droughts that can occur in trading, which is what gives me pause. I alone could handle a drought, my wife cannot, which means I cannot. 😃

At this point I’m trying to figure out what my ask of P&L should be, because I figure if I start too low it’ll be difficult to get a greater share in the future, but just as easy for them to reduce

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