Salespeople cover institutional accounts that buy bonds / equities. Inst accounts include banks, insurance companies, pension funds, money managers, hedge funds, int’l sovereign funds, CDO managers, etc. They usually cover 10-20 accounts, which means interacting with them on at least a weekly basis, if not daily; finding out what they’re looking to buy/sell, etc. Traders will usually deal in 1 product if they’re working at a regional, many products if they’re working at a boutique and a very specified product if they’re working at a BB…
e.g.
GS trader - Agency 15 year paper
Jefferies Trader - Agency passthroughs
Stifel Nicolaus Trader - All ABS, CMOs, Passthroughs, Derivs and ARMs.
Traders find paper for salespeople with regards to specific customer inquiry and position paper that’s cheap and the customers usually deal in.