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Trump Team’s Bond-Trade Worries Are Too Late – Bloomberg Gadfly

Full Article: Bloomberg Gadfly

Regardless of how substantial bond-market liquidity threats are to financial stability, this study is years too late. At this point, banks and investors have generally adapted to the current environment.

Comments
  • Wolfman
    WolfmanJune 9, 2017"Bloomberg news is just another progressive media outlet and not an independent source of expert journalists who can put personal bias aside. The notion that people have generally adapted to this new world reflects a stronger desire to promote an ideology than to understand the structural impacts of reduced dealer liquidity provision. So, disagree with the conclusion of the "adaption", then you may just be a conservative...…"
  • Jester
    JesterJune 9, 2017"Really liked the data in this article, but there were a couple of huge misstatements that caught my attention. Here was the first doozy: “And it turns out that bond trading can still be lucrative for large banks, even with much less risk. The goal is to rack up enough volume to generate substantial profits, regardless of the fact that each trade is less profitable than in the past. At this point, the biggest lenders employ traders with more experience matching up buye…"

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Jester
Member
Really liked the data in this article, but there were a couple of huge misstatements that caught my attention. Here was the first doozy: “And it turns out that bond trading can still be lucrative for large banks, even with much less risk. The goal is to rack up enough volume to generate substantial profits, regardless of the fact that each trade is less profitable than in the past. At this point, the biggest lenders employ traders with more experience matching up buyers and sellers than deciding how to take risks, like the star traders of the past. (Those traders… Read more »
Wolfman
Member

Bloomberg news is just another progressive media outlet and not an independent source of expert journalists who can put personal bias aside. The notion that people have generally adapted to this new world reflects a stronger desire to promote an ideology than to understand the structural impacts of reduced dealer liquidity provision. So, disagree with the conclusion of the “adaption”, then you may just be a conservative…

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