Now that the holidays are over, work is getting busier and busier. I am learning a lot and really enjoying my days. My hours are not nearly as grueling as some of my friends’ who also work in the finance industry: I have to be at work each morning by 8am, and I leave some time after 6pm, depending on how busy we are.
And something that’s particularly nice about Hong Kong is that there is a two hour lunch break built in to the middle of each day. It’s not an official rule or anything, but it’s generally accepted that between noon and 2pm, very little action goes on, at least in the corporate bond market. I am free to go have a nice lunch with a friend, get some important task accomplished, meet a customer for coffee or simply walk around to get a bit of fresh air.
I like this schedule because you can work hard from 8am to noon, relax for two hours, and then go at it again in the afternoon, feeling completely refreshed, like you’re starting over. Working in New York was exhausting because each day was long and drawn out, with hardly a minute’s break. Dividing the day into two reasonable halves makes each ‘session’ more productive and interesting. The day hardly ever drags, and it’s usually fun and exciting.
I think I have mentioned before that I only have one coworker here in Hong Kong. His name is Kevin, he is from London and he just turned twenty-four. Kevin is a great broker, and he is trying hard to teach me how things work. I feel very comfortable around him, asking questions and trying to learn from him. Even though I far from know it all at this point, I can still say that everything I do know about the business, I have learned from Kevin. We get along very well and are friends inside and outside of the office. He is just as good about giving me advice on Hong Kong as he is about teaching me how to broker.
In general, there are two types of bond brokers operating in the financial marketplace. One of these is the so-called “big-screen broker” who updates his prices on a computerized screen to which all of his clients have access. If a client sees a price he likes, he can execute a trade electronically and receive instant confirmation. These screen brokers facilitate the trading of tens of millions of bonds per trade and make a small commission on each bond. When hundreds of millions of bonds are trading each day, even a tiny commission per bond can yield large profits.
The second type of broker is the off-screen broker, and that is what I am out here. We specialize in the odd lots and illiquid securities that slip past the screen brokers. The trader’s advantage for using an off-screen broker is that we can often get inside the “screen” market and secure a better execution price on a smaller size—you see, a seller might want to sell ten million bonds at 101.50 but would part with a small scrap of only half a million for less, say 101.40. This way, a trader can save a considerable amount, and for this service, he is willing to pay an off-screen broker a slightly higher commission. So even if we don’t trade that same volume as the big-screen brokers, there is still the potential to earn decent money.
When I arrived in Hong Kong, brand new to the business, I had no customers. Just like every other broker who ever started from scratch, I had to make those dreaded cold calls. I am still in the process of making them. I have to find ways to locate the phone numbers of fixed income traders throughout Asia, and then I have to call them and give them my pitch.
I call banks in Indonesia, the Philippines, Singapore, Malaysia, China, South Korea, Thailand and any other place I can. Usually the person I speak with is very receptive and interested in being added to my distribution lists. (Honestly, there is no reason for them not to be—they have nothing to lose and everything to gain. If they don’t like the prices they see, they can just ignore them. If they do like a price they see, then they buy or sell bonds.)
However, what can be tricky is getting to speak with the proper person. I have spent hours trying to get non-English speaking operators to connect me with a trader; I have been on hold listening to tacky jingles for what seems like forever; I have been passed from one operator to the next to the next only to be disconnected after twenty minutes and have to start back from the beginning. It’s not the most enjoyable process, but it’s really the only way to get started, even if it is annoying.
And something that’s particularly nice about Hong Kong is that there is a two hour lunch break built in to the middle of each day. It’s not an official rule or anything, but it’s generally accepted that between noon and 2pm, very little action goes on, at least in the corporate bond market. I am free to go have a nice lunch with a friend, get some important task accomplished, meet a customer for coffee or simply walk around to get a bit of fresh air.
I like this schedule because you can work hard from 8am to noon, relax for two hours, and then go at it again in the afternoon, feeling completely refreshed, like you’re starting over. Working in New York was exhausting because each day was long and drawn out, with hardly a minute’s break. Dividing the day into two reasonable halves makes each ‘session’ more productive and interesting. The day hardly ever drags, and it’s usually fun and exciting.
I think I have mentioned before that I only have one coworker here in Hong Kong. His name is Kevin, he is from London and he just turned twenty-four. Kevin is a great broker, and he is trying hard to teach me how things work. I feel very comfortable around him, asking questions and trying to learn from him. Even though I far from know it all at this point, I can still say that everything I do know about the business, I have learned from Kevin. We get along very well and are friends inside and outside of the office. He is just as good about giving me advice on Hong Kong as he is about teaching me how to broker.
In general, there are two types of bond brokers operating in the financial marketplace. One of these is the so-called “big-screen broker” who updates his prices on a computerized screen to which all of his clients have access. If a client sees a price he likes, he can execute a trade electronically and receive instant confirmation. These screen brokers facilitate the trading of tens of millions of bonds per trade and make a small commission on each bond. When hundreds of millions of bonds are trading each day, even a tiny commission per bond can yield large profits.
The second type of broker is the off-screen broker, and that is what I am out here. We specialize in the odd lots and illiquid securities that slip past the screen brokers. The trader’s advantage for using an off-screen broker is that we can often get inside the “screen” market and secure a better execution price on a smaller size—you see, a seller might want to sell ten million bonds at 101.50 but would part with a small scrap of only half a million for less, say 101.40. This way, a trader can save a considerable amount, and for this service, he is willing to pay an off-screen broker a slightly higher commission. So even if we don’t trade that same volume as the big-screen brokers, there is still the potential to earn decent money.
When I arrived in Hong Kong, brand new to the business, I had no customers. Just like every other broker who ever started from scratch, I had to make those dreaded cold calls. I am still in the process of making them. I have to find ways to locate the phone numbers of fixed income traders throughout Asia, and then I have to call them and give them my pitch.
I call banks in Indonesia, the Philippines, Singapore, Malaysia, China, South Korea, Thailand and any other place I can. Usually the person I speak with is very receptive and interested in being added to my distribution lists. (Honestly, there is no reason for them not to be—they have nothing to lose and everything to gain. If they don’t like the prices they see, they can just ignore them. If they do like a price they see, then they buy or sell bonds.)
However, what can be tricky is getting to speak with the proper person. I have spent hours trying to get non-English speaking operators to connect me with a trader; I have been on hold listening to tacky jingles for what seems like forever; I have been passed from one operator to the next to the next only to be disconnected after twenty minutes and have to start back from the beginning. It’s not the most enjoyable process, but it’s really the only way to get started, even if it is annoying.
Our office, with its incredible view over Victoria Harbor
Speaking of things that are annoying, on Christmas Day we discovered that our pipes were leaking in the new apartment! Although it wasn’t causing a problem for us, the old Chinese couple living downstairs had water dripping through their ceiling in several spots. It turns out the old pipes all needed to be replaced, and to do this the water for our apartment was completely cut off—no running water in the kitchen, no water to shower in the bathroom, no water to do laundry and no water to brush your teeth. We couldn’t even use the toilet! Our landlord owns another apartment up the road, and we had to traipse over several times a day whenever the need arose. Imagine me walking through the streets of Wan Chai with shampoo, soap and a change of clothes… I got some very curious stares. Luckily, though, the workmen have finished and we have water again.
And Hong Kong is still a great city, running water or no running water. I am having the time of my life exploring all it has to offer, from wonderful restaurants to sweeping views of the skyline to the great museums. This place keeps topping itself, and at the end of each day, I love it even more than the day before.
Although I am unsure how many years I will spend out here, I can rest assured that I could live here for the rest of my life and never run out of things to see and do. There's a quote from Myrna Loy that was once displayed at the World Trade Center PATH station—where I used to ride back to Jersey after work many an evening—proclaiming, “Something’s always happening here. If you’re bored in New York, it’s your own fault.” Having grown up just outside of New York and having spent most of my life there, I completely agree with Ms. Loy’s assessment. But it’s nice to know that the Big Apple isn’t the only city in the world that provides a constant parade of fascinating sights, sounds and events. Hong Kong certainly is the New York of the East, and I am very happy life has lead me to this wonderful place.
And Hong Kong is still a great city, running water or no running water. I am having the time of my life exploring all it has to offer, from wonderful restaurants to sweeping views of the skyline to the great museums. This place keeps topping itself, and at the end of each day, I love it even more than the day before.
Although I am unsure how many years I will spend out here, I can rest assured that I could live here for the rest of my life and never run out of things to see and do. There's a quote from Myrna Loy that was once displayed at the World Trade Center PATH station—where I used to ride back to Jersey after work many an evening—proclaiming, “Something’s always happening here. If you’re bored in New York, it’s your own fault.” Having grown up just outside of New York and having spent most of my life there, I completely agree with Ms. Loy’s assessment. But it’s nice to know that the Big Apple isn’t the only city in the world that provides a constant parade of fascinating sights, sounds and events. Hong Kong certainly is the New York of the East, and I am very happy life has lead me to this wonderful place.
No comments:
Post a Comment