Serving the Quantitative Finance Community

User avatar
Topic Author
Posts: 129
Joined: November 24th, 2007, 11:15 pm

future of CDS trading from a buyside perspective?

October 8th, 2011, 6:28 pm

Heard banks will be reducing CDS flow trading, is it still a good area to be in?I mean, from the buy-side perspective, are there profitable trading opportunities in this area? Are there money to be made? Is it worthwhile to start a career in this area? Is it a dying field? I mean if nobody trades CDS and if governments ban CDS trading, will I be in a wrong career field? (I am joining a buy side credit fund trading CDS)... On the other hand, hopefully my knowledge in corporates and fixed income will still help me even if in the future I have to switch to equities or global macro, etcCould anybody please shed some lights on me?
User avatar
Posts: 801
Joined: September 25th, 2003, 9:49 pm

future of CDS trading from a buyside perspective?

October 18th, 2011, 4:41 am

Corporate risk will be a much more important area in the future. Because big corporations are going to be much more creditworthy than sovereigns, hence their importance for buy side investors will increase. Whether you trade CDS or cash (which you will also have to look at)...doesn't matter. Don't think career prospects are dim at all.