Preparation for the internship on the Credit Trading Desk
Hi everyone!
Finally after the exams are finished I would like to spend some time on brushing up some useful concepts with respect to my upcoming internship on the Credit Trading Desk at a BB. Apart from following all the markets daily, is there anything more technical which it would be useful to cover (roughly)?
So far I have covered basic methods of pricing the simplest vanilla derivatives (e.g. futures/forwards or options) at my university. However, I'd like to learn something more (I mean, grasp some general idea) which would prepare me better for the internship. I've got Hull and some other fixed income dedicated books. Obviously, I'm not going to study perfectly all of them. That's why I would like to ask which technical concepts would be particularly relevant for the internship in Credit Trading in a BB.
Would be very grateful for any help! Thanks!
could you specify the desk you will be on? (i.e high yield US credit)
I will rotate around different desks within Credit so nothing specific at the moment. Would be very grateful for any help! :)
Understand what a yield curve is and how it is constructed. Understand how all credit products trade on a spread to US treasuries. And obviously know the different types of credit products out there (muni, HY, IG, etc.).
Thank you! Every advice is very welcomed! :)
Yea, I agree with the above post. Know basic credit spreads: always know the yields for US 10y and 10y German Bunds. I would consider looking into understanding what Z-Spread is, perhaps know CDS spreads and their price movements in the regions your desk covers, stay on top of current events in the regions you cover, you might want to know when fed auctions are. Everything sort of depends on which desk you're on. Ask the sales and traders what they look at when they first wake up or when they first get to their terminal, write it down, and check it everyday as well, then be able to have conversations about those particular indicators they care about. Hope I was helpful, good luck.
Definitely helpful, thank you! As you said, I'm trying to stay up to date with all the events, and read up about different themes to understand them in depth. Also, really like the part about approaching traders. Thank you everyone! If anyone has something more to add, please feel free!
6-Week Credit Trading Internship - Need Advice (Originally Posted: 04/15/2014)
I'm headed to NYC to work at Barclays for 6 weeks in Credit Trading. It's not the traditional internship given scheduling complications I have, and I am wondering how I should prepare for something like this. I have been following news, learning credit default swaps and monitoring the FED, but I am just curious what I should really be prepared for. I want to give myself the best possible chance to receive an offer and I believe being properly prepared to take full advantage of this 6-week opportunity will help me put my best foot forward.
Any and all advice welcome --
Thanks
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