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The New Quant Billions Are Hiding in the Bond Market – Bloomberg

Full Article: Bloomberg

In credit, systematic traders sort corporate obligations into buckets called carry, value, momentum and size to analyze spreads relative to credit risk, leverage, the size of the issuer and ease of trading. Factor devotees say their volatility-adjusted approach sidesteps yield-chasing and duration risk. And after back-testing, JPMorgan Chase & Co. estimates long-only factors can best the market over the long haul.  

BlackRock’s Head of Trading Lays Out How the Firm is Navigating the Electronic Transformation of Fixed Income – Business Insider

Full Article: Business Insider

“What we would do is we would connect with five to six of the liquidity sources, with broker dealers, and then it’s important to partner with firms like [Tradeweb] and MarketAxess to aggregate the next hundred liquidity providers. That liquidity is important to us,” she said.

Citadel Squares Off With Pimco Over 48-hour Bond Reporting Delay – Bloomberg

Full Article: Bloomberg

A fight is brewing between financial industry heavyweights with Citadel urging regulators to scrap a proposed review of whether the disclosure of big bond trades should be delayed, pitting billionaire Ken Griffin’s firm against investment giants including Pacific Investment Management Co.

Could OpenFin Be As Big As Bloomberg? – The Desk 

Full Article: The Desk

From a trader’s perspective this ought to mean new services can appear on their desktops without any fuss or bother, where connecting them once might have been slower and more difficult. It also offers another possibility. By employing the connectivity between different systems as operational ‘hops’, trading desks 

Wall St Banks Have Seen eTrading Chip Away at Their Control of the Corporate Bond Market. Now They’re Fighting Back – Business Insider 

Full Article: Business Insider

Some of the biggest banks that serve as corporate bond dealers, including Bank of America Merrill Lynch, Citigroup, Goldman Sachs, JPMorgan, and Morgan Stanley, are actively working with their clients to help facilitate direct electronic trading.

This Time IS Different, Credit Shop Argues – Institutional Investor 

Fixed-income hedge funds had $556 billion in assets under management, about six percent of the $9.2 trillion corporate bond market. “Given their relatively small size, it is simply impossible for hedge funds to ‘become the market’ and absorb large liquidity shocks,” according to the report.