Updated July 21, 2023
Overview of Fixed Income Career
A career in the fixed-income domain is part of one of the largest job markets in the financial space. In this job profile, you will help companies to raise debt to fuel their business growth.
Also, this profile will offer you excellent exposure and a vibrant surrounding overwhelmed by many fixed-income products and their complex mechanism. It is worth mentioning that fixed-income jobs are considered one of the most secure and dependable careers in the financial space. This article will discuss some of the most sought-after Fixed Income profiles you can pursue in your career.
Career in Fixed Income
This article will discuss some of the most sought-after job profiles you can pursue in your career. The job profiles are:
1. Fixed Income Analyst
As a fixed-income analyst, you will be expected to acquire industry expertise, evaluate companies’ financial data and assess the relative value of securities, which is then used to support trading and portfolio analytics.
Responsibilities:
The major responsibilities of a fixed-income analyst include the following:
- Helping senior staff members in preparing investment recommendations.
- Support senior staff in managing the investment portfolio actively.
- Developing comprehensive knowledge about some specific sectors.
- Conducting research at the level of the company and the economy.
- Analyzing each fixed-income security.
- Communicating research findings clearly and concisely.
- Helping portfolio managers with trade-related duties.
- Maintaining data quality and timely reporting of investment-related spreadsheets.
- Assisting project-related requests on an as-needed basis.
Educational, Skill, and Experience Requirements:
A fixed-income analyst should have the following education, skill level, and professional background:
- A bachelor’s degree in finance, accounting, business administration, or other related fields.
- More than 4 years of experience in the investment industry.
- Sound understanding of financial concepts, principles, and theories.
- Knowledge of macroeconomics and its expected effect on the investment portfolio.
- Effective oral and written communication skills.
- Working knowledge of Bloomberg, MS Office, and other financial software applications.
- Other preferred or recommended qualifications include CFA or MBA.
Salary:
In the US, the median annual salary of fixed-income analysts is around $70,464, with the highest 10 % earning more than $125,000 while the bottom 10% earning less than $51,000.
Source Link: Link
2. Fixed Income Trader
As a fixed-income trader, you will work directly with the portfolio managers and help them construct and manage investment portfolios across all fixed-income asset classes.
Responsibilities
The major responsibilities of a fixed-income trader include the following:
- Keep an eye on new issues in the primary market for various asset classes.
- Executing trades in the secondary market daily.
- Helping portfolio managers build client portfolios based on client mandates and various other constraints.
- Helping portfolio managers evaluate portfolio statistics regularly to ensure that the portfolio positioning reflects the current market scenario.
- Explaining the client’s current market views and other technicalities as and when needed.
Educational, Skill, and Experience Requirements:
The fixed-income trader should have the following education, skill level, and professional background:
- A bachelor’s degree in finance, accounting, business administration, or other related fields.
- More than 5 years of experience in trading fixed-income products.
- Strong knowledge of government and corporate credit products.
- Expert in asset-backed, securitized, basic options, derivatives, and other credit market products.
- Strong communication and business writing skills.
- Sound knowledge of working with Bloomberg.
Salary:
In the US, the median annual salary of fixed income trader is around $88,466, with the highest 10 % earning more than $166,000, while the bottom 10% earns less than $52,000.
Source Link: Link
3. Fixed Income Strategist
As a fixed-income strategist, you will formulate and articulate a company’s perspectives on various fixed-income strategies, macro-economic, yield curve positioning, etc.
Responsibilities
The major responsibilities of fixed income strategist include:
- Formulating and articulating Fed decisions and complex macro events into definite actionable fixed-income strategies.
- Contributing to more than one internally managed multi-asset portfolio simultaneously.
- Communicating clearly and concisely the relevant fixed income views and, subsequently, the actionable ideas in the form of conference calls, written commentary, or public presentations.
- Identifying taxable investment opportunities and briefly communicating these opportunities to traders and advisors.
Educational, Skill, and Experience Requirements:
A fixed-income strategist should have the following education, skill level, and professional background:
- A bachelor’s degree in finance, accounting, business administration, or other related fields.
- More than 7 years of relevant work experience.
- Sound understanding of the subtleties of the financial markets.
- Ability to write and orally communicate ideas within teams and across clients.
- Strong interpersonal communications skills and proficiency in public speaking.
- Other preferred qualifications include CFA, MBA, or other advanced degrees.
Salary:
In the US, the median annual salary of fixed income strategist is around $83,969, with the highest 10 % earning more than $155,000, while the bottom 10% earns less than $53,000.
Source Link: Link
Conclusion
So, it can be seen that a career in fixed income entails lots and lots of preparation along with hard work. A fixed-income job profile can be doubly rewarding as it offers healthy financial compensation and the satisfaction of being an integral part of a business model. Further, a fixed-income job’s role is critical as it can influence a company’s decisions on policies and investments. Therefore, as an aspiring youngster who wants to pursue a career in fixed income space, you must ensure that your knowledge and research skills in fixed income are second to no one.
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