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Fixed Income (Il) Liquidity in Focus – Markets Media 

Full Article: Markets Media

“Banks can’t do everything for us, nor should they,” he said. Electronic trading platforms and other alternative liquidity providers can help to the extent that they aggregate liquidity, but block trading remains a significant challenge, Prager said.

Comments
  • Goose
    GooseJanuary 12, 2018"I listened to a portions of the discussion. A few things caught my interest. As Jester noted, Citi said their client group is getting narrower. Barclays mentioned how important is is to be top 3, for seeing flow purposes, and dealers with niche businesses continue to get marginalized. On the flip side, you had commentary that said the ETF players are adding liquidity, some buysiders are talking to more counterparties, and all to all trading is making strides. Block tr…"
  • Slider
    SliderJanuary 12, 2018"I felt like I was at an industry conference listening to that crap yesterday although I must admit I did enjoy very much when Richie Prager actually said something like maybe “liquidity is not a god-given right”'for all bonds. I think most people would be in agreement with his but people were mostly speaking about the investment grade market, not high yield and muni's so assume his comment was made towards HG bonds. WOW! What happened to the Muni market or is that on…"
  • Jester
    JesterJanuary 12, 2018"A full day discussion on corporate bond liquidity and not one mention of the new issue market or the allocation process? Wow, just wow. Perhaps this is the reason that the representative from Citi said that in 2017 only 25 clients made up 60% of their volume. Could this be the same 25 clients that get the overwhelming volume of allocations on new issue deals? Why does this matter and what does it have to do with bond liquidity? Well, it stands to reason that if fewer…"
  • Wolfman
    WolfmanJanuary 12, 2018"Did I notice a shift in the message here? The buy side can't stand in at all time for dealers? The regulatory changes since 2010 created an environment that restricted dealers' abilities to take on risk and that's not the headline here? This is a great opportunity to tie together the impact that regulations have had on liquidity and press for action. Blah, blah, blah, blah, blah, blah...…"

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4 Comments on "Fixed Income (Il) Liquidity in Focus – Markets Media "

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Wolfman
Member

Did I notice a shift in the message here? The buy side can’t stand in at all time for dealers? The regulatory changes since 2010 created an environment that restricted dealers’ abilities to take on risk and that’s not the headline here? This is a great opportunity to tie together the impact that regulations have had on liquidity and press for action. Blah, blah, blah, blah, blah, blah…

Jester
Member
A full day discussion on corporate bond liquidity and not one mention of the new issue market or the allocation process? Wow, just wow. Perhaps this is the reason that the representative from Citi said that in 2017 only 25 clients made up 60% of their volume. Could this be the same 25 clients that get the overwhelming volume of allocations on new issue deals? Why does this matter and what does it have to do with bond liquidity? Well, it stands to reason that if fewer and fewer institutional buy-side accounts can access new bonds then the environment for… Read more »
Slider
Member
I felt like I was at an industry conference listening to that crap yesterday although I must admit I did enjoy very much when Richie Prager actually said something like maybe “liquidity is not a god-given right”’for all bonds. I think most people would be in agreement with his but people were mostly speaking about the investment grade market, not high yield and muni’s so assume his comment was made towards HG bonds. WOW! What happened to the Muni market or is that on a future agenda? I was very unimpressed with the Citi, Barclays, Greenwich research on b/o spreads… Read more »
Goose
Member
I listened to a portions of the discussion. A few things caught my interest. As Jester noted, Citi said their client group is getting narrower. Barclays mentioned how important is is to be top 3, for seeing flow purposes, and dealers with niche businesses continue to get marginalized. On the flip side, you had commentary that said the ETF players are adding liquidity, some buysiders are talking to more counterparties, and all to all trading is making strides. Block trades are still difficult to get done. Conclusion…e trading, ETF liquidity, and all to all are adding to oddlot execution. Market… Read more »