The Accidental Modernization of the Fixed Income Markets

After dire predictions that ETFs would exacerbate volatility in fixed income, investors instead used the instruments to skirt many of the antiquated bond market’s structural problems. Blackrock’s Carolyn Weinberg estimates that 60 pension funds, insurers, and asset managers were first-time buyers of fixed income ETFs during the first quarter. Use Overbond’s ETF basket construction and…

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Bond Traders Aim to Separate Distress from Doom

Great thoughts from Brian Chappatta, about sifting through US corporate bonds and sorting out the companies that are merely distressed from those that are ultimately doomed. Utilize Overbond’s Market Surveillance and Fundamental Momentum tools to separate great buys from looming downgrades.  Source: Bloomberg Investment-grade bonds have become almost a commoditized asset class, given the Federal…

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Reliance Plows Billions From Stake Sales Into Debt Funds

As observed by Subhadip Sircar, Divya Patil, and Saket Sundria at Bloomberg, for Reliance Industries is not alone in observing the curve steepening 2s-10s in corporate bonds in India and EM at large, is proceeding faster than the steepening playing out in sovereign bonds. Monitor curve steepening effects for all EM corporate and sovereign yield curves using Overbond’s curve…

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More corporate defaults seem to be on the way

Despite a mini-boom in the bond market, credit defaults are priced in. Companies are mercilessly sorted by recessions. The strongest credits grow stronger. The weakest investment-grade firms descend into junk territory. And the most frail speculative-grade firms go into default. Use Overbond’s market surveillance capabilities and trending financial ratios to monitor the credit landscape for…

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