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…
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…
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…
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…
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…
LONDON, UNITED KINGDOM, ENGLAND, February 27, 2024 /EINPresswire.com/
