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…
Fed Governor Christopher Waller says the U.S. central bank should not intervene to obstruct the market reacting to the brighter U.S. economic outlook. Source: Bloomberg “If we saw a lot of disorderly performance in longer-term yield markets, we might have to step in just for financial stability reasons once again” “But right now the movements…
Asian and European investors are showing early signs of renewing their demand for longer-term U.S. corporate bonds, after yields have started stabilizing, and the result could be better performance for the securities. Source: Bloomberg Tuesday saw the most overnight demand for U.S. corporate debt since October 15, with more than $359 million being sold to…
One company is looking to sell new U.S. investment-grade bonds on Wednesday, according to an informal survey of debt underwriters, as the Federal Reserve meets for the second time this year. The backdrop for issuance is shaky with equity futures mixed, the 10-year Treasury yield higher at 1.66% and the high-grade CDX wider by a…
As the week ended, U.S. credit markets appeared confused, if not outright dysfunctional. The 10-Year Treasury yield began February at 1.09% and reached an interim peak of 1.54% on February 25. Then it retreated to 1.42% as markets thought the rise had simply been overdone. Source: Forbes But Fed Chair Powell’s refusal to assure financial…
Modeling likely best-executable pricing for high-yield bonds that trade once every two weeks requires aggregating vast amounts of data from multiple sources in a credit market fragmented across many trading venues and dark over-the-counter dealing. Source: Euromoney In January, Overbond announced an agreement to take settlement data from Euroclear for bonds that trade away from…
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…
With trading volumes for US corporate bonds up
