Credit Flow Trading and CFI Trading

kbluearmor7's picture
Rank: Orangutan | 271

What kind of products are traded on a credit flow desks? I would imagine ABS, credit default swaps, interest rate swaps, and equity derivatives? Am I correct? Is FX products also considered credit flow?

Also, what do people think of CFI desk? (Carbon Financial Instrument) Do people see potential in CFI trading?

Which area would you choose? and why?

Thanks in advance.

Credit Flow vs CFI Trading Desks

The set up of trading desks will depend on the bank. In general, here's how most credit trading groups are split up.

Credit Flow Desk

Rates Desk

  • Interest Rate Swaps
  • Sovereigns

Emerging Market Credit Desk

  • Emerging Market Sovereigns
  • Emerging Market Corporates

Structured Credit or Securitized Product Desk

  • Asset Backed Securities

On carbon, WSO user @2s5s10s offers this explanation, "That's arguably anyone's guess.
In Europe it's a well known system, and with the US recently passing their bill on a cap-and-trade system it has potential on that side of the Atlantic. The extent to which the EU and US begin to enforce this is the question..." (although this comment was from 2009, so updated comments are welcome!)

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  • Comments (8)

    Nov 10, 2009

    Anyone with knowledge and suggestions?

    Nov 10, 2009

    interest rate swaps are traded on rates flow desks
    equity derivatives are traded on equity derivatives flow desks
    FX is considered FX flow

    Nov 10, 2009

    Sovereign bonds, Corporate bonds , CDS

    Nov 11, 2009

    Depends fundamentally on the bank and the set-up. Credit defines anything with well, a "Credit Element", so countries fall out of this category.

    Corporate bonds: yup.

    Sovereign's: (in my experience) no. They'll be traded either on Rates desks or EMEC desks (as will emerging market corporates).

    Agency's: While they'll trade closely to their Government benchmark, they retain that credit element (though they trade under a different desk).

    CDS: yup.

    Carbon?
    That's arguably anyone's guess isn't it.
    In Europe it's a well known system, and with the US recently passing their bill on a cap-and-trade system it has potential on that side of the Atlantic. The extent to which the EU and US begin to enforce this is the question...

    Nov 11, 2009

    thank you for that info

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    Nov 11, 2009

    credit flow is cash corp bonds and cds.

    ABS is in structured credit trading or securitzed product trading

    May 21, 2010

    First post here.

    Could somebody explain what the daily routine would be for an intern (apart from coffee getting and piss taking)?

    In another thread FX trader said "I've seen tons of SA's come through Cash positions and their challenge always revolves around being able to prove that they can handle it". Any insights on that? What are the particular challenges?

    Thanks.

    May 19, 2010
    Comment