Trading new product: Where do you start?

For the more experienced traders / investors here: I was wondering what steps you take when you have been assigned to trade a new product (buy-side perspective). I'm not talking about switching from equities to FI but within the asset class (e.g. treasuries to corporate bonds).

 
Best Response

I would recommend reading the existing literature which blends academic and practitioner perspectives. Good example is Fabozzi Handbook of FI, assuming this is a FI instrument. Also recommend the 'Handbook of Finance' edited by Fabozzi. It's 3 volumes, and it's great. Also, Bloomberg is your friend–get comfortable with the statistical characteristics of the instrument (look at stuff like convexity, yc's, transaction history, etc.) and mentally evaluate how it differs from the instrument you're used to trading. It's all about comfort and familiarity.

How you approach the transition also depends heavily on whether you are a PM or an execution trader, IMO

 

Ducimus necessitatibus aut quisquam sunt dolor enim. Placeat pariatur eos reprehenderit rerum aspernatur.

Nobis omnis perferendis fugit recusandae ut dolorem repudiandae. Molestiae quia eaque illum rerum enim aliquid. Sunt consequuntur molestiae sed atque soluta.

Facere rem sit sit voluptatem possimus facere. Enim ut quam deserunt et voluptas nihil rerum saepe. Nobis unde nihil enim ipsum eveniet voluptatem illo.

Career Advancement Opportunities

March 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Magnetar Capital 96.8%
  • Citadel Investment Group 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

March 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

March 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Citadel Investment Group 95.8%
  • Magnetar Capital 94.8%

Total Avg Compensation

March 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (22) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (249) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
DrApeman's picture
DrApeman
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
kanon's picture
kanon
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”