Focus on making a profit by buying and selling bonds.
What does a Bond Trader do?
A Bond Trader connects buyers with sellers in the securities market, focusing on bonds. What are bonds, you ask? They are basically loans. Say Google has 10 billion extra dollars. They might offer that money up in the form of bonds. A buyer purchases a bond, with the understanding they will receive an interest payment on that money once they cash it in. The seller, in turn, uses the money from the sale to make other investments. The United States government is an example of a provider of bonds. If you go to the bank today and ask for a $25 savings bond, you can then cash it in 15-20 years from now and receive $50. This is just one small-scale example within the huge industry in which Bond Traders work.
If you’re a Bond Trader, you generally work for an investment bank or large corporation. This is a high-stress position, because once you prove yourself, you’re handed billions of dollars to invest as you see fit. If you perform poorly, you’re out of a job. If you perform well, you can make impressive amounts of money.
The stakes are high for you, so you spend a lot of time analyzing foreign markets, government and corporate bonds, and market trends. Within each of the securities, you evaluate yields, maturities, and interest rates to help you choose the proper investments. Because of this, you need strong analytical and math skills, an affinity for risk, and the ability to perform under pressure.