ETF traders are increasingly wary of the corporate bond market as inflation anxiety boils over. Source: Bloomberg Short interest in the $41 billion iShares iBoxx $ Investment Grade Corporate Bond exchange-traded fund (ticker LQD) is now 21.5% of shares outstanding, the highest on record, according to data from IHS Markit Ltd. The onslaught of bearish sentiment comes…
Euro zone bond yields rose on Monday as investors returned their focus to a brighter economic outlook and its implications for central bank policy following large swings following Friday’s U.S. non-farm payrolls data. Source: Reuters Rising crude oil prices after a major cyberattack forced the shutdown of critical fuel supply pipelines in the United States…
The UK authorities are pushing on in earnest with reforms to the UK’s financial regulatory framework with one of the latest missives involving some ‘quick fixes’ to the markets in financial instruments directive (MiFID) II as proposed by the Financial Conduct Authority (FCA). Source: Global Risk Regulator On April 28, the FCA launched a consultation…
A pause in a broad selloff in U.S. treasuries and other global bonds last month has given foreign investors time to rethink their Asian holdings and shift money to safer markets such as China, away from riskier countries like Indonesia and India. Source: Reuters China, India and Indonesia were among the largest recipients of yield-seeking…
Euro area government bonds have notched up their worst monthly performance against U.S. Treasuries in a year and investors are bracing for a bigger sell-off over coming months as the pace of vaccination finally picks up across the bloc. source: Reuters Ten-year U.S. Treasuries’ yield premium over equivalent German bonds, a gauge often used to…
Euro zone bond yields edged higher on Monday, amid a growing sense that the worst may be over for the bloc’s coronavirus-battered economy. Italy’s 10-year bond yield was up 1.5 basis points, after hitting its highest since October 2020 at 0.831%, up 5 bps, as prices fell and the gap over German peers widened out…
U.S. banks are capitalizing on the reversal in rates, and breaking sales records in the process. The firms issued $19bn of bonds maturing in 10y or more in the first three and a half months of 2021, only to flood the market with $26bn of longer-duration paper in the last four trading sessions. JPMorgan set…
F1 teams and bond traders both use tech to eke out small gains for big wins Formula One races are won or lost through small decisions and small actions. Each decision to pit, brake or overtake adds or subtracts milliseconds that could mark the difference between victory and defeat. So, too, in bond trading a…
The expansion of the nation’s vaccination campaign to younger adults is bolstering the outlook for higher education bonds amid growing optimism for a more normal return to campuses in the fall. Source: Bloomberg The Bloomberg Barclays index of the riskiest municipal securities for education — which includes those sold for student housing and other facilities…
The big wave of credit ratings upgrades will probably continue in U.S. high-yield bonds if history is a guide, according to strategists at Barclays, an expectation that is helping fuel investor demand for the securities. Source: Bloomberg It usually takes three quarters after the worst moments of a market calamity for credit ratings upgrades to…
Amid the recent hype surrounding ChatGPT, Wall Street
Systematic hedge funds are experiencing shifts in how
