Is PT - Portfolio Trading the future?
Seeing a large amount of orders get through PT channels in my group. Is that the future? vs. line trading? How's that compared with algo trading, especially on the credit side? Career potentials/exits?
Can speak to credit PT. My BB seems to think it’s the future as they’re investing quite a bit in it. Have spoken with some of the traders and they say it’s tough to turn much of a profit as create/redeems are Jane Street’s bread and butter currently
interesting. I work on the buy-side and do see PT trades coming up a bit more often.
In credit as a sell side firm you are going to have a very hard time staying relevant if you are not active in portfolio trading even if the PT desk is not a huge money maker (I agree that banks don’t have the resources to compete with Jane Street/Citadel) So much flow gets done that way as it’s such an easy way for the buy side to quickly shift portfolios and exposure, if you are not seeing that flow and leveraging the cash axes it generates you are just going to have a hard time being material to clients.
In other products you could theoretically do it on the bid side but the offered side liquidity is not the same like it is in credit since shorting individual CUSIPs is not really done.
that makes sense. apprecite your comment!
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