Coffee Catch-Up Meet Nick Lowings
Read excerpts from our Q&A below:
Hi Nick!
Thank you for joining us for coffee!
We hope the Sydney office is treating you well. We’re absolutely delighted to have you as part of the team.
To kick things off, could you tell us a bit about yourself and share some insights into your current role at IAM?
I started my career in London in Fixed Income prop, first at a Japanese bank and then at Merrill, where I ran the desk until the GFC. It was an exciting time, but also quite stressful—so when I was offered a sales role at BNP in Sydney, I didn’t hesitate. I’ve not looked back.
At IAM, my role is to support the sales team by drawing on my years of experience. One of my main focuses is improving spreadsheets so that RMs can quickly and accurately identify trade ideas and price up portfolios. I’m also brought in to dig deeper into calculation methodologies, explain the various metrics we use to evaluate performances, and create cash flow schedules and charts.
Are there any standout projects or achievements from your career that you’d like to highlight?
The only achievement worth anything is the respect of your colleagues. I’m not one for the spotlight—I’d rather be a quiet achiever, someone who can be relied on to get things done thoroughly, accurately, and quickly.
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Now, let’s dive into the professional side of things.
What advice would you give to someone aiming to navigate the Capital Markets field?
All financial products are just a schedule of expected cash flows. Don’t get bogged down in rules, market conventions, or formulae. If you know the cash flows, you know the product.
Also, the fixed income world is quite small—there are probably only a few thousand people in the global bond market, which means you’re just an ex-colleague away from a good reference… or a bad one. So be nice to everyone!
It’s always intriguing to get a peek behind the curtain! What are some misconceptions you’ve encountered in the fixed income industry, and how do you address them?
We often like to think about rates in spot space because they’re easier to get our heads around. Forwards, on the other hand, are less intuitive, and that can lead to poor strategies. These misconceptions can only be tackled with cold, hard maths.
For instance, someone might think, “If I buy a 2-year, 2% coupon bond at par, I’ll do better over the next year than buying a 1-year, 1% coupon bond at par.” Unfortunately not! If the 2-year rate is 2% and the 1-year rate is 1%, then the 1-year rate 1-year forward (1y1y) is 3%, which means that the 2% coupon bond will be priced at 99 in a year. Only if the market rallies will you outperform.
Love that perspective! When it comes to investing, do you have any personal mantras or principles that guide your approach?
If I don’t have an edge, I wouldn’t trade something actively. There are some very smart people out there with the best analytics and high quality, immediate information. They’ve got an edge, and on average, they’ll outperform and you’ll underperform.
But when it comes to longer-term ‘buy and hold’ investments, it’s a different story, especially where the tax system can give an individual an edge. Buying your own home or investing in bonds or shares for retirement can be very sensible in my book.
Moving across to the personal side, we like to know more about the person behind the professional.
With Sydney’s sensational weather—certainly a step up from the UK—what aspects of living here do you particularly enjoy?
Ironically, there are days when I actually miss British weather. I’ve got about nine minutes in the sun before I burn, and I’m definitely not in peak shape, so anything over 20 degrees has me sweating. Plus, Sydney’s weather isn’t always as predictable as you’d think. At least in Britain, you know it’s going to be overcast with showers all day, so you can plan ahead!
That said, the best thing about Australia is how easy it is to live here. We might grumble about traffic, healthcare, or the cost of living, but it’s nothing compared to the UK. Australia is safe, democratic, relatively corruption-free, and well-off. I think every Australian should be made to spend a year overseas just to realise how good they’ve got it here!
You have a background at Oxford. How was your time there, and what did you study?
Ah, that was a while ago! I studied Economics & Management, although I’m not sure how much of it I remember now. If there’s one lesson I took away from my time there, it’s this: there’s always someone better than you—smarter, faster, funnier, better looking. The only person you should ever compare yourself to is who you were yesterday.
I’m actually heading back there in December to show my partner my old college and introduce him to some of my classmates. He’s mainly excited to see the bits they used as locations for the Harry Potter films!
How do you strike a work-life balance, or what’s your favourite way to unwind after a long day?
I’ve got subscriptions to all the streaming services but hardly ever watch them, and I really should cook more, but I never plan ahead with ingredients. The gym is my go-to, though. I’ll usually spend an hour or two there every day. It’s less of a gym and more of a social club—everyone’s there to chat and gossip more than do serious exercise, so it’s a nice way to unwind.
We’re looking forward to getting to know you better, Nick!
