Which desk is best for me?
Hello everyone. I recently accepted a FT trading offer at a BB in NYC. However, I am unfamiliar with possible desk options. I am more interested in micro level analysis than I am predicting the future macro environment, so was curious if any of you have any recommendations for suitable desks. I enjoy value investing within the equity market, so a few of my initial thoughts included equities trading (would I be market making or would I be analyzing underpriced shares?) or risk arbitrage trading. Still, I am unsure of whether or not these desks would offer what I am looking for. Thank you in advance, and I look forward to hearing back from everyone.
If you want to research underpriced securities and make bets on them, a Hedge Fund is a bit more appropriate. So, now you have something to look forward to!
You'll probably be a market maker, but I can't say with any more certainty than the next bum.
Credit desks (particularly HY) are usually pretty micro.
HY is as micro as they get. Also one of the few bright spots in Fixed Income right now.
Isn't high yield very dependent on the macro interest rate environment?
No.
So how does duration play into high yield trading? I have a hard time believing they don't consider it, but what do I know.
I'm really only now looking at these sorts of things, so maybe I'm too focused on the current environment, but here's the Merril HY Master II Index's stats from yesterday: Yield 7.41 Spread-govt 602 Eff Dur 4.21 On a quick estimation, that 50 bps interest rate change would move the index a little over 2%-seems material to me, but maybe bonds are just more volatile and traders don't really consider that important.
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