Like most other positions in an institution that deals with bonds, bond trading managers must have extensive knowledge of bond terminology and the most common buying and selling regulations and practices. Unlike bond sales managers, however, bond trading managers focus primarily on trading bonds on behalf of their clients, rather than selling the bonds directly. Both investment banks and commercial banks will employ bond trading managers, in order to oversee their trading enterprises.
Managers oversee individual bond traders in their primary duty, which is the purchase and sale of bonds. When there is a shift in the market, it is the responsibility of the bond trading manager to begin implementing contingency plans. Monitoring the market effectively and being fully aware of current bond prices are essential to the role of a manager. As many customers want to diversify their portfolios, but may not be educated about bonds; trading managers will often consult with potential clients, explaining the particulars of bond purchasing and duration. Knowing when to purchase, when to wait for a more stable market, and how to explain this to customers is one of the main functions of a trading manager.
Bond trading managers also review orders placed through bond traders and make recommendations to the trading team based on market projections. It is the responsibility of the trading manager to determine which types of bonds fit a client’s needs and to make the recommendation, as well as to ensure that all trades are being recorded and regulated properly. Evaluating suggestions from bond traders and developing bond marketing techniques are also common tasks for a trading manager. Outside of directing the team in matters related to bonds, managers also handle interpersonal disputes, administrative tasks, and find new clients.
Since a manager has far more responsibilities than a bond trader, most institutions require a bachelor’s degree in the financial field, as well as experience in leadership positions and bond trading. While most of this training can be done on the job, as the U.S. Bureau of Labor Statistics explains, some institutions require Chartered Financial Analyst certification. All positions will require a bachelor’s degree specializing in a relevant field and knowledge of the market and bond trading requirements.