Many traders strive to eventually run the desks they work on as managers. These bond trading managers are an equal part trader and supervisory risk manager. They are ultimately responsible for the P&L of the desk. But they also decide which staff members on the desk to cut when layoffs arise and have some discretion when paying out bonuses. Bond trading desks in financial centers handle billions of dollars in transactions daily. The U.S. bond market, according to Bonds Online, is more than $14 trillion in size and expected to add new issues at a rate of $10 trillion in 2013. Daily trading volume exceeds $500 billion. But almost anything could affect interest rates, so you focus on “the macro” on the rates trading desk: economic growth, trade policy, inflation, exchange rates, and monetary policy. Rates products offer significantly more liquidity than other types of bonds, so flow trading desks here tend to be loud and busy. How do bond buyers and sellers find each other without an exchange? As financial blogger Felix Salmon explains, “If you want to buy or sell a bond on the secondary market, there’s really only one way to do it: phone a bunch of [bond dealers], ask them to make you a market, and either accept the best price you find, or don’t.” 10 When you buy a bond, you are lending money to the government or company that issued the bond, and in return, the government or company that issued the bond is agreeing to pay your money back, with interest, at some point in the future. Think of it this way. How bonds work When you buy a bond, you're loaning a sum of money to its issuer for a predetermined period of time. In exchange, the issuer promises to make regular interest payments at a These desks work in isolation from those processing trades on behalf of the bank’s clients. The objective of these desks is to earn profits above those that could be earned in their normal market-making trades. Another reason to keep the trading desk separate from the other desks is to avoid conflicts of interest.
This includes people who are currently retail bond desk staff, money market traders, back office staff who aspire to work on a trading desk, investment 23 Aug 2019 With banks' bond trading desks increasingly going electronic, another “There is a lot of money spent on mundane work like data entry, which The section work experience is an essential part of your bond trader resume. It's the with other trading desks to ensure that FX trading activity is aligned wi.
Bond trading desks in financial centers handle billions of dollars in transactions daily. The U.S. bond market, according to Bonds Online, is more than $14 trillion in size and expected to add new issues at a rate of $10 trillion in 2013. Daily trading volume exceeds $500 billion. But almost anything could affect interest rates, so you focus on “the macro” on the rates trading desk: economic growth, trade policy, inflation, exchange rates, and monetary policy. Rates products offer significantly more liquidity than other types of bonds, so flow trading desks here tend to be loud and busy. How do bond buyers and sellers find each other without an exchange? As financial blogger Felix Salmon explains, “If you want to buy or sell a bond on the secondary market, there’s really only one way to do it: phone a bunch of [bond dealers], ask them to make you a market, and either accept the best price you find, or don’t.” 10 When you buy a bond, you are lending money to the government or company that issued the bond, and in return, the government or company that issued the bond is agreeing to pay your money back, with interest, at some point in the future. Think of it this way.
These desks work in isolation from those processing trades on behalf of the bank’s clients. The objective of these desks is to earn profits above those that could be earned in their normal market-making trades. Another reason to keep the trading desk separate from the other desks is to avoid conflicts of interest. A syndicate desk is a team of individuals responsible for researching, marketing, and pricing larger deals on the sell-side, particularly bonds, loans, or stocks of companies. They are also referred to as a syndicate team and are important for corporations trying to launch a new deal to market. A bond ladder is a portfolio of individual bonds with different maturity dates. The staggered maturity dates help reduce risk if interest rates fluctuate. And since many bonds generally pay out twice a year on dates that coincide with their maturity date, monthly bond income can be structured around those dates. Learn More About How Bond Ladders Work
Fixed Income Trading: Job Description, Recruiting and Interviews, Different Desks and Fixed Income Products, Salaries and Bonuses, and Exit Opportunities.