This study presents new evidence on buy-side institutions as a channel of liquidity supply in the corporate bond market

It found that redemptions worth 1% of the total net asset value of bond funds could result in European investment grade corporate bond spreads increasing by around 40bps, while a sell-off of 1.3% of assets could lead to a 70bps widening. 

FNL Exclusive: This brilliant article by Fischer Black predicts how technology and electronic trading will change equity market structure. 

The decision to offer a financial reward to market makers — the financial institutions that commit to offering prices for other investors to trade — draws on similar practices that already occur more commonly in equity and futures markets.

Postcrisis regulations have reshaped bond markets, with the largest asset managers gaining advantages over smaller competitors

A few weeks ago, Graham Giller, head of data science research, CIB Data Science at J.P. Morgan, shared a conversation he had with a credit trader from his firm about a year ago who said that they did not know the price of things.

Regardless of how substantial bond-market liquidity threats are to financial stability, this study is years too late. At this point, banks and investors have generally adapted to the current environment.

You’re going to have a portion of the buy side that will continue to do their business through the RFQ model, but at some point, there’s going to be integration with or into the CLOB model

We link directly the trading behavior of market participants to their balance sheet constraints. We find that post-crisis regulation has had an adverse impact on bond-level liquidity.

AllianceBernstein has sold the intellectual property and technology behind ALFA to Algomi, a fixed income data platform. AllianceBernstein is also taking an undisclosed minority stake in Algomi and a seat on the board.