Bond Traders Ought to Swap Mythology for Modernity – Bloomberg
August 21, 2020 \
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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.
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Bond Platform Trumid Tops $1 Billion Valuation in Funding Round – Bloomberg
TPG also bought into the round, which was led by growth equity firm Dragoneer Investment Group LLC, Trumid said in a statement Tuesday. It plans to use the money to expand its products to include emerging markets and reach into new geographies like Asia.
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Bond Market Gets New Entrant in Race to Automate Debt Sales – Yahoo! (Bloomberg)
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.
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BlackRock Conflicts Managed ‘Extremely Carefully,” Fed’s Powell Says – Reuters
Any potential conflicts that may arise from having investment giant BlackRock Inc buy corporate bonds and commercial mortgages on behalf of the Federal Reserve are being managed “extremely carefully,” Fed Chair Jerome Powell said on Wednesday.
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The Accidental Modernization of the Fixed Income Markets – Institutional Investor
Even though legitimate criticisms of exchange-traded funds persist, data shows that investors used ETFs to help them get through the worst of the dysfunction in this year’s credit markets.
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Rutter Launches Ambitious New Bond ‘Ecosystem’, LedgerEdge – 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.”
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The Fed is Buying Some of the Biggest Companies’ Bonds, Raising Questions Over Why – 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.”
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Bond Trade Loved by Wall Street Nears Another $100 Billion – 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.
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The Fed’s $250 Billion Debt-Buying “Index” Loophole – ZeroHedge
Initially, the SMCCF was structured to hold two types of investments, “Eligible Individual Corporate Bonds” and “Eligible ETFs”. Yesterday, the Fed introduced a third category: “Eligible Broad Market Index Bonds”. This new category allows the Fed to immediately begin buying individual corporate bonds in much larger volume than previously anticipated.
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US Corporations’ Bond Market Clout – OMFIF
Corporate treasurers retain the ability to sway conditions in key markets. Their role has taken on a renewed importance given the mass issuance of global government and corporate debt sparked by the pandemic shock.
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