What exactly is structured credit trading? I know some banks have a correlation structuring desk, correlation trading desk, a special situations group, and a structured credit trading desk. I am getting these all confused. Would someone be able to definite their roles more precisely?
Thanks!
At DB SCT is a broad unit encompassing Correlation structuring/trading. Most importantly it has the 'illiquids' group that invests capital into illiquid assets - such as infrastructure and energy projects and sells the tranched debt to investors who would want to take on the credit risk.
Is this a good group to be in? What sort of exit opps do people have from here or do they just stay in it forever?
Thanks.
also curious about this
Where I was it has both very structured correlation products, as well as the flow side of tranches. It also includes the associated options/warrants desk. I had the same fear when i got assigned there for the summer - it really is an awesome place, though, because there is the chance to get a flow side (if you follow the underlying or tranches -- this is what I consider Structured Credit Trading), the structuring area (Correlation and Structuring), and hybridized products (swaptions -- part of SCT). Don't know about Special situations, although I never saw that on the SCT side, only Prop.
Dont know about exit opps, but since it often takes a proprietary role, my guess is that hedge funds could be a logical out. Although, from what I hear, success is just as sweet on the bank's side as it is on the hedge funds' side. Hard to tell since the product didn't really exist more than 5 years ago...
As far DB is concerned SCT got ranked the best SCT shop (Euromoney) and it was highly regarded. The group is very diverse so you could be looking a number of exit options.
illiquids could lead to PE trading illiquids could lead to HF trading
What exactly are illiquids? Sorry for my naivety.
taking a guess but things like asset backed stadium revenue deals, movie film financing, other obscure stuff, etc...
well yes those would certainly be 'illiquid' but you most 'exotics' are illiquid.
Where could you go from a structured credit desk (interally in a bank)?
makes me shiver reading about structured credit from posts in 2007... will it ever really come back?
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