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Unlocking Corporate Bond Liquidity with AI – Forbes 

Full Article: Forbes

These new technologies allow asset managers to initiate a trade with the knowledge that there is sufficient liquidity at their expected price and ask the best-equipped dealer to work their order – based upon that dealer’s current and past performance. In turn, dealers can leverage the same AI technology to identify interest and liquidity within their own network, and efficiently connect the most probable clients to optimize a successful transaction. 

Here’s Why It’s So Hard to Fix the Corporate Bond Market – Bloomberg (Podcast) 

On this episode, we speak with Larry Harris of the USC Marshall School of Business and a former Chief Economist at the U.S. Securities and Exchange Commission, where he helped push through major stock market reform known as Reg NMS, about why the corporate bond market has been so resistant to substantial change. Harris was also part of the SEC’s most recent effort to improve corporate bond trading — the Fixed Income Market Structure Advisory Committee (FIMSAC) created in 2018. He explains why it hasn’t had much success in changing the market.

Rethinking How to Work a Bond Order – Greenwich

Full Article: Greenwich

We recently gathered input from 16 corporate-bond liquidity providers, examining their views on liquidity, where they see opportunities for innovation and the market’s next step forward. Their key areas of planned investment—direct connectivity to clients and ways to better leverage their client network—are another sign that the market has fundamentally changed from its post-credit-crisis norm.

Innovation Through Electronic Trading – The Desk

Full Article: The Desk

An exciting development we’ve seen in recent years is that modern bond desks are broadening their list of liquidity providers and connecting to a wider range of counterparties. This has two major effects: it means that fixed income traders are able to tailor their execution methods, and in many cases it can reduce costs by eliminating fees from intermediaries. By connecting to multiple liquidity providers, fixed income traders are able to take advantage of each counterparty’s individual strengths alongside the broad base of liquidity from larger institutions.

Gensler Turns Spotlight on How Hard it Can Be to Get Bond Prices – Bloomberg 

Full Article: Bloomberg

Gensler, who testified Tuesday before the Senate Banking Committee, said in prepared remarks released beforehand that he wants to “bring greater efficiency and transparency” to the trading of corporate bonds, municipal bonds and mortgage-backed securities. He offered little detail on what new rules might look like.