Inflation Trading Desk Info?

This has become a hot area in S&T, just wondering if anybody had any insight into the desk such as an example of a trade, best banks for it, etc. A general insight is also fine.

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Comments (6)

May 16, 2022 - 4:39am
hsmith15873, what's your opinion? Comment below:

Don't have too much info. 

- Example product/trade: treasury inflation-protected securities is an example product. Inflation books usually hold assets across the different FICC asset classes. I think the desk gets involved in lots of position-taking given that the market is somewhat illiquid.

- Best banks: GS seems to have a good desk (based off recent articles surrounding their performance); I assume other top BB's (JPM) will also have a strong inflation trading business

  • Analyst 1 in IB-M&A
May 16, 2022 - 7:35am

I'm assuming we've both read about the GS London desk Bloomberg article with that child prodigy right?  To the best of your knowledge, was the inflation desk just not hiring in the past few years? What did they do in the past 10 years with low inflation/low rates?

Most Helpful
May 16, 2022 - 10:03am
hsmith15873, what's your opinion? Comment below:

Re: article - yep. 

- Hiring: From some looking online, there have been one or two new (junior) hires onto the London desk over the past few years - these tended to be top target (i.e. Oxbridge) STEM students. Can't speak about the US side of the franchise (I think the inflation desk is run out of London?, so I would assume very few hires as well in NYC). However, given the growing interest in that area, it wouldn't surprise me if the desk continues to expand. Also, I am sure a few HFs might grow out their expertise in this area as well - so could be some career opportunities there as well.

- What were they doing in past 10+ years: genuinely no idea, so don't want to lead you astray. I have a few guesses (e.g. trade other linear rates products; etc.), but no evidence/anecdotes to corroborate any claims. 

Given how little information exists online, I feel uneasy about posting any additional information. Sorry I can't be of any more help. Hopefully someone else will be able to chime in and provide more info.

  • Analyst 1 in IB-M&A
May 16, 2022 - 8:23pm

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