Insights on Fixed Income Trading
Hi everyone,
I'm interested to learn more about fixed income (FI) trading desks.
I’d really appreciate hearing your insight into how FI desks typically operates/are structured… some specific questions could relate to:
- What attracts people to FI trading?
- What keeps traders on FI desks?
- The good (and/or bad) elements of FI trading.
- What you think about the short- and long-term outlook for FI?
- A 'day in the life' of someone working on a FI trading desk
Thank you for reading this far. And if you have thoughts or experience relating to FI trading, it’d be great to hear from you!
Incoming sa in fixed income s&t at a bb so take it with a grain of salt. Because im a bit of a contrarian, I'm attracted to the job because just not that many people are interested as everyone still seems to get into tech, vc, pe, ib and l/s investing and anything that isn't fixed income. In my opinion, a lot of these fi products have huge markets and volume such as agency mortgages and very few juniors pursuing these opportunities. As a result, I think it's going to be a great place to make money going forward if one decides to spend their career specializing in the field.
I interned at this mm for snt this summer that everyone shits on this forum and their exits for fixed income was insane. Basically everyone went to multi-manager hedge funds on teams that they specialized in. Second I would say I like the job because I have more of a quant background so the approach to fi just makes sense to me. I think the drawback tho is you are very far removed from the actual things you buy as fixed income and securitized products in particular are much more far removed from the actual collateral or underlying than private equity or activist investments.
Would love to hear takes from more experience people in the space as im looking to start a career!
Answers from someone in mortgage trading -