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
- Interest Rate Swaps
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!)