How do I Become a Fixed Income Trader?

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  • Written By: D. Nelson
  • Edited By: M. C. Hughes
  • Last Modified Date: 13 November 2019
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Fixed income is a kind of investment in which returns can be expected periodically, each payment being for roughly the same amount. A simple example of a fixed income investment is a loan, equal portions of which are paid back with interest by the borrower the same time each month. The lender could be said to have made a fixed income investment by lending the money with interest. A fixed income trader is a financial professional who manages the debts and other fixed income investments of large organizations, such as investment banks. In order to become a fixed income trader, it is important that you have good mathematical skills and a penchant for working in high stress situations.

A fixed income trader is responsible for making profitable decisions based on the variable investment market. He or she also analyzes the histories and risk factors of various companies and markets. Traders may also examine market trends and prices.

Fixed income traders deal with large sums of money on a daily basis, so it is necessary to have well-developed math and quantitative skills. To become a fixed income trader, it may be necessary to attend a college, university, or training program in which you can learn business math and other subjects that improve your quantitative abilities. Fixed income traders often need to make large financial decisions quickly, which may require a masterful understanding of financial mathematics.


An individual who can work well in stressful, high pressure situations is much more likely to become a fixed income trader. These professionals often make decisions that can assist large organizations in either gaining or losing millions of dollars at a time. Because large sum profits and losses can have significant impact on the future operations of the organization, many income traders feel a great deal of pressure. Many of these decisions must be made quickly since offers could be taken by other bidders if they are not grabbed quickly enough. This also contributes to the high pressured environment in which fixed income traders work.

In many cases, it is necessary to have a college degree or to have completed some kind of training in order to become a fixed income trader. While this kind of certification is often not required by law, many employers will look for degrees or certification as a sign of proficiency in necessary skills and abilities. Completion of a degree or certificate program may also allow you to operate with a greater degree of confidence, a trait which is common among those who become fixed income traders.


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