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JPM and Citi Disband Odd-Lot Trading Desks – Bloomberg

Full Article: Bloomberg

Citigroup and JPMorgan Chase have closed down desks dedicated to handing smaller orders as Wall Street continues to cut costs on trading floors. The two banks have shuttered their odd-lot trading desks in recent months and started executing such trades electronically instead, according to people with knowledge of the

Ways to Survive the Next Liquidity Crisis – Seeking Alpha

Full Article: Seeking Alpha

We’re not the first firm to sound an alarm bell over liquidity in the fixed-income credit markets. Indeed, that bell has been ringing non-stop since the since the collapse of Lehman Brothers. The risk has only grown in recent years as regulations pushed market makers out of the business, in spite of record growth in the size of the corporate bond market.

Robots Conquered Stock Markets. Now They’re Coming for Bonds and Currencies – Bloomberg

Full Article: Bloomberg

The stakes are huge for Wall Street banks competing in the $22 trillion market for U.S. Treasuries and corporate debt and the $5.1 trillion-a-day foreign-exchange market. Handling fixed-income products remains one of industry’s biggest revenue generators. Now firms must disrupt the old model by building out their electronic platforms, or they risk getting sidelined in the future.

  • Wolfman
    WolfmanMarch 8, 2019"It's been a while since I've posted and I'm not sure if anyone noticed! I couldn't help myself today... Here's my take. People act in their own self interest. Why do I start with that? Because I always start with the givens and then work my way through an argument. We've heard for 10 years now that the sell-side has been weakened by regulation and capital restrictions and although many thought this would just be a temporary setback, it has materialized into a fundamen…"

Here’s the Pitch Deck TruMid Used to Raise $53 Million – Business Insider

Full Article: Business Insider

Business Insider got a look at Trumid’s investor presentation, which gives an inside look at what it’s like to start a venue that matches bond buyers and sellers using technology. As you can see from the slides, it’s not easy. Volumes, at least in the beginning, can be hard to find.

Concannon ‘Graduates’ to Fixed Income – Markets Media

Full Article: Markets Media

“The FX market used to be dealer-driven until the banks withdrew from taking risk,” he added. “Technology developed in FX can be deployed in fixed income algos, and to provide anonymous liquidity in an agency model.”

  • Goose
    GooseFebruary 8, 2019"Color me skeptical.. the liquidity profile of size, daily volume, strategies, turnover, consistent bid/ask are all very similar to FX and will support a robust agency model. Also this... "Open Trading is MarketAxess’ all-to-all trading model which allows the buy side to also supply liquidity, rather than the traditional model of only banks supplying liquidity to investors". Saw a linkedin article that said buyside to buyside corporate bond trading is 2…"