Norris asks how changing market conditions lead to secondary market trading
in Granite’s client portfolios. Whitney responds: “Our research teams run models to
assess relative value across fxed-income sectors which, combined with our economic
outlook, leads to trade ideas. For example, currently our macroeconomic team is
concerned about the situations in several sovereign nations and the spillover effect
to capital markets. Tese issues range from geopolitical risks that will likely increase
the price of oil to outright sovereign defaults or restructuring
Whitney’s secondary trading rationale is best described as:
A structure trades.
B credit-defense trades.
C sector-rotation trades.
