Week eleven here at Arbor I learned some of the process on how bonds are traded. It still is a little bit over my head, but I got the basics down as of now. It is all used through personalized Bloomberg’s which has all the people who are bond traders on it. To have a Bloomberg, it will cost you roughly sixty thousand dollars. That may seem like a lot, but your investment in it will pay off as long as you put in the work.
How it all works is you get a request from a client on a trade and you talk it over with the other traders in the office so that you can see if you get can the best bid possible in order to make the most money on your trade. Once you and the trader have communicated you call back the potential client and make your offer. This is all done through Bloomberg. Once agreed you send a ticket through Bloomberg saying you bought this many (TIPS or Corporates) and your bond should be complete. Now there is some more that goes on, but the information that I did not put in is the information that I still do not know.
Closing in on roughly two weeks left of my internship I am really trying to maximize what I get out of this. Each day I am trying to find something new that I have not learned here yet at Arbor. It has been about forty-five days since I started and I have loved each day of my internship. I am glad I was given this opportunity to share my story on this blog and to the class because the fixed income world is a good place to be and I am glad I got to be able to experience it this summer.