A Tulip By Any Other Name: What Happened to the Big Bad CDS Market? – ViableMkts
August 12, 2016 \
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Full Article: ViableMkts
In 2007, the market for Credit Default Swaps (CDS) was on a six year journey from relative obscurity, to being the hottest financial product in the world. The outstanding notional size of the market had grown from less than $1 Trillion in the beginning of 2001, to over $60 Trillion by the end of 2007, with no signs of stopping. Almost ten years later, the outstanding size of the CDS market is hovering just over $10 Trillion, the result of eight consecutive years of decline.
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Now We Have Two Answers to the ECB Corporate Liquidity Question – Bloomberg
Now the ECB is in full throes of CSPP, which began June 8th, and disclosed information about its holdings on July 18th, we have the data to test out these liquidity fears. Firstly, a big caveat is in order. There’s no standard and objective measure of bond market liquidity since bonds are predominately traded over the counter (OTC), unlike stocks
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Project Sentinel Completes MiFID II Technology Specification – The Desk
Project Sentinel, the bank collaboration to mutualise the cost of MiFID II implementation in the OTC front office, has completed the detailed business requirements that meet MiFID II regulatory obligations.
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Morgan Stanley Profit Beats Estimates as Bond Trading Gains – Bloomberg
JPMorgan Chase & Co. kicked off earnings season last week by beating estimates as fixed-income trading revenue and loan growth jumped. Citigroup Inc. and Bank of America Corp. also exceeded estimates, while Wells Fargo & Co.’s results were in line with expectations. Goldman Sachs Group Inc. on Tuesday said net income surged 74 percent on gains in fixed-income trading and debt underwriting.
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Bond World Grows Less Opaque – Bloomberg Gadfly
Starting Monday, the Financial Industry Regulatory Authority will include more information in its Trace bond-price reporting system to give a clearer sense of how much investors are paying traders in commissions for each transaction and the proportion of trades executed on electronic systems.
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US Corporate Bond Market: What Year Is It? – ViableMkts
Practitioners from “modernized” financial markets who have no experience in corporate bonds find the US corporate bond market structure to be an enigma. This is because the technology, architecture and cultural practices in the corporate bond market are years behind other markets…..but just how many years?
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BlackRock to Push Wall Street Chat Tool – 4 Traders
BlackRock Inc. will urge banks, brokers and others who interact with it to communicate via a messaging platform backed by banks and investment firms called Symphony Communication Services LLC, according to people familiar with the matter
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Over Half of Buy Siders to Re-Evaluate Fixed Income Brokers – The Trade
In the US, 64% of buy-siders named re-evaluating current broker relationships as the second top priority, with 68% saying implementing US regulatory guidelines is the most important priority
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Buy Side Provides More Fixed Income Liquidity – Markets Media
“In Europe, 55% of (MarketAxess) Open Trading volume is buy side-to-buy side and approximately 50% on a global basis. There has been a significant behavioural change but we are in the early days of buy side providing liquidity.”
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James Switzer (Alliance Bernstein) On Taking Control – The Desk
Electronic pools are popping up everywhere, and we found it was getting more difficult to look at them effectively, without hiring a lot more traders. I have people on the trading desk that are excellent traders and really understand technology, so together with our IT department, they built us a tool that we call the Automated Liquidity Filtering and Analytics (ALFA) tool.
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