I have never come up with any trade ideas outside of equities, so I don't actually understand how it works really. I know what FI products are and the basics of FI but what does a FI trading idea entail within the realm of S&T? If someone could help me on this seemingly dumb question I would really appreciate it. What exactly is expected of me when I pitch to a client/ what kind of things are pitched?
Do I have to do fundamental analysis or something? How do we make money for the bank if we can't prop trade, but have to have the opposite position our clients want? its so confusing...
Like say Client X wants to buy 10 million 30-yr bonds from our bank, we would then be short 10-million of these bonds... how do I make money from this trade, if I think the bonds are going to go up in value?/how would I even know they are going to go up in value? DO banks always have to accept a trade in such a case?
ANY insight on these questions would be much appreciated. Thanks
Please forgive me for any ignorance. I just want to learn.
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