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Dutch Regulator Calls for Overhaul of MiFID II Fixed Income Transparency Rules – The Trade

Full Article: The Trade

“In general, we note that the overall sentiment is that MiFID II has not yet delivered on its goals in the fixed income markets and can still be considered a work in progress,” the AFM’s report stated. “The main finding is that MiFID II’s focus on transparency based on liquidity has proven to be counterproductive given the lack of liquidity in the fixed income markets where most instruments are tailor-made and not designed to be traded on a secondary market in the first place.”

Crisis? What Crisis? USD Corporate Bond Liquidity Since COVID – Seeking Alpha 

Full Article: Seeking Alpha

The COVID-19 crisis has impacted nearly all asset classes, and USD corporate bonds have not been spared. As the mid-March 2020 market volatility affected USD corporate bond prices, it also compromised their liquidity. While these spikes in liquidity costs occurred across the USD corporate bond asset class, we found the level of impact-and the path to returning to pre-crisis levels-varied across credit rating and sectors.

Bond Traders Ought to Swap Mythology for Modernity – Bloomberg

Full Article: Bloomberg

So then why have these seemingly common-sense, pro-transparency adjustments remained elusive for so long? Those who follow the battles within corporate-bond market structure might recall that BlackRock Inc. and Pacific Investment Management Co., neither of whom are part of the Credit Roundtable, were on the same side recently in advocating for a pilot program that would reduce secondary-market transparency in exchange for potentially better liquidity. 

Bond Market Gets New Entrant in Race to Automate Debt Sales – Yahoo! (Bloomberg)

Full Article: Yahoo!

Liquidnet’s system will allow investors to receive deal announcements and updates as well as place orders and receive allocation and pricing details. The company already runs a platform for trading existing bonds in the secondary market used by more than 1,300 investors who it aims to attract to the new product giving access to the new-issues market.

Rutter Launches Ambitious New Bond ‘Ecosystem’, LedgerEdge – The Desk 

Full Article: The Desk

“The secondary market for corporate bonds is growing and is ripe for an evolution, but existing platforms are not fit for purpose. Data is monetised by platforms and it is leaked across fragmented, opaque markets, decreasing execution quality. Working with the industry, we will build a platform that solves the challenges of locating and promoting liquidity and data ownership once and for all.”

The Fed is Buying Some of the Biggest Companies’ Bonds, Raising Questions Over Why – CNBC

Full Article: CNBC

“It does sort of make you wonder if it makes sense for them to be buying bonds of Apple. Spreads are so tight and stocks are doing so well. You wouldn’t think they would need support from the Fed,” said Kathy Jones, director of fixed income at Charles Schwab. “The reasoning I guess makes sense. But when you look at the outcome, you scratch your head and wonder whether this is where we need the money to go.”

Bond Trade Loved by Wall Street Nears Another $100 Billion – Bloomberg

Full Article: Bloomberg

Portfolio trading, powered by the ETF boom, was gaining converts as markets in many individual bonds all but froze. Transactions cleared by Tradeweb Markets Inc.’s electronic platform have doubled from a year ago, reaching a cumulative $90 billion globally last month. That’s already more than in all of 2019, and puts Europe on track to surpass Wall Street’s tally from last year, too.