Trading automation is needed in fixed income, but where will the data come from?

Currently, the only solution in the marketplace that shows what bonds have traded and at what prices across various trading venues that also includes the Over-The-Counter (OTC) trading volumes, is “client side data aggregation”. This involves aggregating data feeds from various providers internally. Up until a few years ago, it wasn’t possible to process, map…

Read More

India Bond Traders Are on Edge Amid Conflicting RBI Signals

In emerging market news, India bond traders are on edge amid conflicting Reserve Bank of India signals. Just days after announcing measures to lower yields, the RBI has given traders signals about their reluctance in pushing rates down further. This stems from the RBI going back on their word and purchasing bonds at higher than…

Read More

A Red-Hot Treasury Trade Starts to Unwind Every New York Morning

With the Federal Reserve expected to take a more relaxed approach on inflation, something that became known at the virtual Jackson Hole Symposium on August 27th, bond traders have since been positioning for a steeper yield curve. Overbond AI models optimize curve flattening and steepening on corporate spreads and sovereign underlying benchmarking against a large number of…

Read More

Fed Seen Holding Rates at Zero for Five Years in New Policy

A low-yield environment is here to stay. The US Federal Reserve looks likely to keep short-term interest rates near zero for five years or possibly more. This brings upon certain challenges for investors looking for higher fixed-income yields. Use Overbond’s Similar Bond Screening feature to identify the highest-yielding bonds with optimal liquidity profiles. Source: Bloomberg…

Read More

Defaults in China’s US$4.1 trillion corporate bond market could hit record high this year as recovery remains fragile

With the Chinese economy in a precarious situation, some fund managers are bracing for defaults on domestic Chinese debt to hit record highs this year. The situation is similar in the West, with US corporations already experiencing a slew of downgrades and defaults. Monitor and sidestep these delinquencies with Overbond’s Probability of Default feature that measures company…

Read More

Investors Are Ramping Up Bets Against Bonds in the ETF Market

The all-around bullishness in fixed income ETFs may be coming to an end. With traders newly shorting $544 million worth of LQD, the ETF dipped 1.2% over the past month after gaining 19% since March 23rd. KatherineGreifeld states in an article published by Bloomberg: “Short sellers may be thinking that the yield curve has bottomed out…

Read More

Inflation Shock Will Hit India, Russia, Mexico Bonds Hardest

If the recent spike up in U.S. inflation numbers is a sign of things to come for global markets, that could prove especially bad news for debt investors in certain EM markets like Indian, Russian and Mexican. Message us to learn to monitor macro risk factors using Overbond’s market surveillance tools. Source: Bloomberg The fixed-income…

Read More

Buy-side issues framework to standardise bond issuance

The Credit Roundtable, a buy-side lobby group for bondholder protection has issued an ‘Investment Grade Primary Best Practices Framework’ designed to improve bond issuance. The measures are meant to standardize a process that has been historically fraught with inefficiency and unnecessary costs to investment managers. This is an issue Overbond is very familiar; check in…

Read More

Using machine learning to explain extreme price moves

Data is abundant, not only in volume, but also in the number of sources it is derived from, the frequency at which it is updated, and the variety of formats it may take. Time spent sorting through that data, however, can keep businesses from generating actionable information at pace. Ask us how we can help…

Read More

Will Apple Bring Sticker Shock to Credit Markets?

The average yield spread on double-A corporate bonds has narrowed by more than 50 basis points since Apple’s last offering, suggesting the iPhone maker could lock in a 10-year rate around 1.25%. To put that in context: Before this year, the U.S. government itself had never borrowed so cheaply. With corporate spreads compressing to historic…

Read More