Bond trading finally dragged into the digital age

Some trends quietly fizzle out without leaving a mark. Others implode, with everyone wondering what on earth we were thinking — like Tamagochis or fidget spinners. Occasionally, a halting, haphazard trend suddenly hits a point where it starts spreading like wildfire, and its success feels like it was always preordained. Electronic bond trading fits the…

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E-Trading in Credit – Poised for Ramp-Up

Strong flows and growing demand for market data, trading tools and protocols should increase electronification of credit markets, the laggard in fixed income, even as work-from-home norms adjust. Historically low rates and compressed spreads have driven the search for efficiency, which also favors e-trading, and a Gary Gensler-led SEC would likely push to improve credit-market…

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Junk Traders Shift From Old Habits as Electronic Market Expands

Electronic trading is finally taking off in the junk-bond market, where instant messages, phone calls and close-knit relationships have long defined the way of doing business. MarketAxess Holdings Inc. saw high-yield trading jump 52% last month from a year earlier to a record $1.9 billion in average daily volume, the company said last week. Rival…

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The Bond-Trading Revolution Is Real This Time

Bond markets have for years been seemingly close to a tipping point when it comes to electronic trading, yet they could never quite breakthrough. Yet those who closely follow technological advances and market structure were unwavering. “The slow and steady change that has occurred over the past decade will ultimately be seen for the revolution that…

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Bond Traders Struggle to Pick Winners in Riskiest Markets

Discerning investors could eke more gains out of developing-nation bonds, but the bulk of the rally in the riskiest corners of the market may have passed. Source: Bloomberg The gap between spreads on emerging-market high-yield debt and global peers has narrowed from a record 470 basis points in May to 127 basis points, close to…

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The promise of AI in corporate bond trading

For Vuk Magdelinic, using artificial intelligence in corporate bond trading is more than a promise — it’s a reality. “We can automate 30 percent of a trader’s entire trading workflow,” says the CEO of Overbond, a fixed income AI analytics company. “So, if I’m a trader and I trade 300 transactions a day, 100 out of…

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The GameStop and AMC drama doesn’t stop with the stock market

The bond market is largely out of reach for day traders, unless through a proxy, so it would seem safe from the dynamics that have launched volatility in equities like GameStop Corp. Source: MarketWatch But it’s not, exactly. The stunning ascent this month of GameStop GME, -26.15%, AMC Entertainment Holdings Inc. AMC, +5.05% and other heavily shorted stocks targeted by day…

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