From Goldman to SEC: Gensler’s Next Stop Worries Wall St – Bloomberg
January 15, 2021 \
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Full Article: Bloomberg
The tale of Gary Gensler’s transformation has always been remarkable. He went from being one of the youngest partners in the history of Goldman Sachs Group Inc. to becoming a favorite of progressive Democrats as a financial regulator during the Obama administration. Now, it’s about to add another chapter and Wall Street is very worried.
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PIMCO, Man Group, IHS Markit, State Street, Microsoft and McKinsey Join Forces on OMS – Businesswire
HUB’s greenfield platform will be built by asset managers to transform the industry’s operating model by providing flexible and modular solutions across middle and back office functions, all while reducing cost and mitigating risks. The platform will accelerate the move to a digital operating model enabling asset managers to deliver innovative solutions to their clients both now and in the future.
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Firms Like AQR, Blackstone, and Point72 Are All Leaning into Systematic Strategies in Bond Trading – Business Insider
Blackstone is just one of many investors embracing the quant strategies in bond markets, which has been relatively slow to adapt to the new algorithm-driven reality compared to equity markets. Big managers like Renaissance Technologies, Point72, and Millennium began building up teams over the last couple of years
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Why Bond Investors Are Taking On More Risk – Barron’s
“I assert, currently, you are not getting paid for credit risk and this is certainly a major consideration when you look at your portfolios,” Mark Grant, chief global strategist, fixed income, at B. Riley Financial, similarly writes in his Out of the Box client note. This bond-market veteran puts the blame on the Federal Reserve and other central banks for creating a “borrower’s paradise” and “fixed-income investor’s hell” by holding interest rates down, in part to help finance massive fiscal deficits.
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Boom in Fintech Bond Sale Platforms Risks Fragmenting Market – Bloomberg
The concerns follow a flurry of new technologies from New York to Hong Kong trying to drag the process of placing bonds into the 21st century. There are now at least 35 different systems for new bond deals across the globe, up from 22 in 2018, according to data from the International Capital Market Association.
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America’s Zombie Companies Have Racked Up $1.4 Trillion of Debt – Bloomberg Quint
From Boeing Co., Carnival Corp. and Delta Air Lines Inc. to Exxon Mobil Corp. and Macy’s Inc., many of the nation’s most iconic companies aren’t earning enough to cover their interest expenses (a key criterion, as most market experts define it, for zombie status).
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Eurozone Corporate Borrowing Costs Fall Below Japan’s to World’s Lowest – S&P Global
Borrowing costs for investment-grade companies in the eurozone have fallen below their counterparts in Japan to the lowest in the world as the damaging economic impact of a second spike in COVID-19 cases on the continent is expected to be countered by increased monetary stimulus by the European Central Bank.
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Boeing sees roughly $12 billion in demand for new debt deal, despite massive cash burn – MarketWatch
Bankers and investors still need to haggle over the ultimate size and price of Boeing’s BA, +0.10% new debt financing, but order books for the transaction already have reached about $12 billion on what could end up being at least a $4 billion pile of fresh corporate debt, according to an investor monitoring the transaction.
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Heat Around the Consolidated Bond Tape – The Desk
We’re in an environment where the large asset managers have a lot of data and smaller players don’t and essentially when there are times of market stress, certain market participants are able to take advantage of other market participants.
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SEC Committee Tackles Disorderly Electronic Bond Trade Reporting – Wall St Journal
The Fixed Income Market Structure Advisory Committee proposed the SEC adopt new reporting standards aimed at improving transparency and helping traders decide which electronic marketplaces to frequent.
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