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BFAM Partners ("Traits they are looking for" (Tech (Java, C/C++,…

- - - - Trading the future volatility of an instrument rather than the actual instrument itself
        (XIV, XXX)
      - Inverse Trades (inverse of the market)
    - - Convertible Bonds
        
        Coprorate bonds that investors can convert
        into issuers common stock (normal shares)
        Coupon on bond normally a bit lower as a result
        Investors - priority given to conv bond holders over share holders (dividends)
    - - "What is the credit/debt market"
        
        "Markets in which debt instruments are traded"
        
        Debt instruments, assets that require fixed payment to holder (usually with interest)
        
        Examples include bonds (govt/corporate), mortgages
        
        Bond Market
        
        You lend money to govt/corporate in exchange for a bond with an interest rate
        
        If interest rates go up, then the price of the bond that you bought will go down. This is because your bond is paying less interest that what you can now get
      - Looks like they
        buy puts/calls
      - "High Interest Loans"
    - - Call
        
        Buying a Call - Right to buy at certain price
        Selling a Call - Obligation to Sell at certain price
      - Put
        
        Buying a Put - right to sell at certain point
        Selling a Put - obligation to buy at certain price