CEP Job Research Junior Derivatives Trader

Job Nature responsible for the execution of hedges for the banks’ portfolio create monitor and maintain hedge relationship for the derivatives position while achieving macro-hedge objectives verify accuracy of key assumptions used in bank’s back testing (simulation models) develop new in-house applications and tools for pricing credit and interest sensitive financial assets work with Portfolio Managers and Risk Manager to help construct and execute optimal hedging strategies, and provide market commentary

Requirements advanced understanding of Derivatives’ market and strong understanding of theoretical derivatives security pricing via simulation techniques (interest rate, swaps, options) thorough knowledge of residential mortgages or mortgage-backed securities interpersonal skills, ability to organize and research multiple tasks

Basic Skills knowledge in the characteristics of different products strong analytical skills need to understand clients’ needs think of suitable strategy for clients able to explain the nature and risks of futures and options to clients

Equity Derivatives includes bonds, put and call convertible bond: a bond with an option, allowing the bondholders to exchange the bond for a specified number of shares of common stock in the firm. A conversion price is the specified value of the shares fro which the bond may be exchanged. The conversion premium is the excess of the bond’s value over the conversion price.