Fixed Income Trader Responsibilities

Fixed income trader, who is engaged in the trading of fixed income securities that guarantee a fixed rate of return, is a finance and investment professional. Fixed income trader responsibilities include the buying and selling of securities for the clients or for large corporate investment firms. While doing so, they make sure that their investors get a fixed return for a longer period. They study the varying market trends, analyze the current market conditions, and take decisions that would yield more profits for the investing firms or investors.

Key Responsibilities of Fixed Income Trader

Fixed income trader conducts a thorough market research, analyzes the market conditions, and assists in meeting the clients' financial goals by correctly identifying and purchasing the bonds. He is also involved in the marketing of fixed income solutions and strategies that will help in providing better client services. He is responsible for managing the daily trade volumes to ensure timely and appropriate execution of the orders that are in compliance with the regulatory policies. To get a better idea, here is a detailed description that will explain as to what exactly are the key responsibilities of a fixed income trader:

  1. To continuously monitor the market conditions and remain updated on the current market trends and prepare relevant reports
  2. Provide an insight to the clients regarding their fixed incomes as well as relevant feedback to the analysts and portfolio managers based on the market trends
  3. To recommend new strategies by evaluating the existing fixed income investment plans
  4. To offer fixed income products and services as per the client's financial abilities and his interest in investment
  5. To perform all the back end office work, to make entry into new markets, and to make sure that all the activities of trading are carried out efficiently by adhering to the rules and regulations of the company
  6. To maintain healthy professional relationships with the clients and handle all their issues and provide a timely resolution for the same

In addition to the above duties, a fixed income trader makes sure that all the documents and account records are maintained and updated regularly. He/she ensures that they are accurate before they are submitted for the final stage of processing. He/she remains in constant touch with the clients and provides support in all operational procedures and risk management. He/she is responsible for maintaining and updating inventory records of fixed income securities. Thus, in short, a fixed income trader is responsible for executing the transactions of fixed income effectively by gathering the relevant market information and performing a market analysis. Based on this, he/she taps the tactical opportunities, develops innovative trading ideas and concepts that are in compliance with the developed investment strategies.

Essential Skills

A fixed income trader should be able to demonstrate strong analytical, quantitative, and technological skills. He should have a deep interest in the financial markets and should be extremely well organized. He should be able to work in high pressure work environment and within the given time constraints. He should possess a high analytical aptitude, good judgmental and decision making skills. He should have multitasking ability, should be able to manage his work according to priority, and should be comfortable to work independently as well as in a team environment.

Educational Background

Undergraduates or those who have completed a bachelor's degree in finance may get the job of a fixed income trader. The main key is the ability to sustain in a fast paced work atmosphere. He should also possess a valid license to sell the fixed income securities. A training program that covers business math and polishes the quantitative skills would be a great plus. Excellent working knowledge of computers, especially, those with proficiency in MS Office would definitely be preferred.

Salary Details

The minimum salary that can be offered for a fixed income trader is in the range of $35,000 to $40,000. The experienced fixed income traders can get a salary ranging in between $130,000 to $168,000. It is equally dependent on the type of clients or the size of the firm he is working for. Other key deciding factors include his previous experience and the supporting skills that he has.

Work Hours

Fixed income traders usually have hectic work schedules and need to work in a fast paced environment. Their normal duty hours will require them to work for forty to forty five hours per week.

Career Prospects

The career prospects are really promising for those who are deeply interested in pursuing a career in fixed income trading. Those with good educational background will get more opportunities for advancement.

Thus, if you are aspiring to become a complete professional, you should be able to handle the fixed income trader responsibilities effectively and efficiently, which will take you to new heights.

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