Flow Credit Trading Watch

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My $0.02
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#1
Report Thread starter 10 years ago
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Hi People,

What kind of topics should I revise for an internship in flow credit trading...its mostly going to be shadowing traders but I want to be able to ask intelligent questions so any suggestions are welcome. CDS is there bread and butter I think.

Input from the more experienced guys (BP, PM, Drogue, etc) would be greatly appreciated.

cheers

p.s. before you ask yes I know credit trading has been cut back in current conditions
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President_Ben
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Drogue? He isn't a trader, nor in a bank

Read some term sheets for whatever there is if it is exchange/like exchange traded and some option theory. Swaps, look at some credit market spreads or get an idea of where they are, have been. Get details on the flow drop in terms of both quoted size, crosses and new market width. Get an idea of the bigger brokers in your area and then find out how much interest is traded and how much is investor interest. You can have a look at capital structure arbitrage to get an idea of how CDS demand is also not intrinsic to the CDS market, but beware it being a true arb when facing a LBO
My $0.02
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(Original post by President_Ben)
Drogue? He isn't a trader, nor in a bank
Read some term sheets for whatever there is if it is exchange/like exchange traded and some option theory. Swaps, look at some credit market spreads or get an idea of where they are, have been. Get details on the flow drop in terms of both quoted size, crosses and new market width. Get an idea of the bigger brokers in your area and then find out how much interest is traded and how much is investor interest. You can have a look at capital structure arbitrage to get an idea of how CDS demand is also not intrinsic to the CDS market, but beware it being a true arb when facing a LBO
True.

It's all OTC so I think it's best I concentrate on credit market spreads etc.


For the 2nd bolded sentence where do you suggest I go to get such info? Obvious the best place would prob be via a BBerg terminal if not there where is best?
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President_Ben
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(Original post by My $0.02)
For the 2nd bolded sentence where do you suggest I go to get such info? Obvious the best place would prob be via a BBerg terminal if not there where is best?
Bberg/rts won't usually give that. They don't give more than price data since it'd be a little too much redundant data. Few if any still use either as a trading platform (if they trade regularly, one-offs, it is tolerable but you wouldn't want to).

It is easiest to be armed with the question and ask. Crosses = volume. It'd be a right pain to find that info otherwise.
Drogue
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(Original post by President_Ben)
Drogue? He isn't a trader, nor in a bank
Was going to say, I've little to no idea about flow trading!
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