Bond trading algos find fresh hunting ground

Machines oust humans in the market for ‘odd lots’ of corporate debt   Source: Financial Times A quiet but important evolution is unfolding in a less glamorous corner of the US corporate bond market, as machines oust humans as traders of smaller “odd lots”of debt bought by both institutional and retail investors. Banks, asset managers,…

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Investors are so nervous about a potential recession that they’re preparing for one

Investors are nervous about a potential recession as they think we are in a classic case of late cycle economy that has been growing, but is poised to fall into a recession, amid tighter credit availability, lower profit margins and tighter monetary policy. Source: CNBC Some money managers are increasingly nervous about an upcoming recession amid…

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Rising corporate debt: Peril or promise?

Corporate bond issuance has increased 2.5 times over the past ten years, creating a broader and deeper market in many countries. But there are rising risks. Source: McKinsey Since the worldwide financial crisis in 2008, total global debt (including household, nonfinancial corporate, and government debt) has continued to rise, growing by three-quarters from $97 trillion in…

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Investors find value in emerging market debt

  Analysts and economists expect long-term rates in the U.S. to trade within a range possibly driving a search for yield in emerging markets, however, some advisors remain unconvinced and choose to take risks only in stocks, using low-risk, high-quality bond investments to balance a portfolio. Source: CNBC A good reason to buy the bonds of…

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Siemens profit takes a hit as the sector switches to renewable energy

 Siemens core industrial division reported that its quarterly profit fell as renewable energy continued to infiltrate its gas-and-oil business, on a global scale. Source: MarketWatch The closely watched industrial division at Siemens AG, which makes traditional power-generation equipment, recorded a 14% drop in profit in the three months to Dec. 31. Leading suppliers to the power sector,…

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Fintech takes on the front office

 Fintech has untapped potential to boost revenues at CIBs. Fixed Income pricing stands to benefit the most with tools currently in use that use real-time data to help bond traders decide when to transact and at what price. Source: The Banker Of the $30bn invested globally in fintech in 2017, just 6% went to primary…

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Electronic Bond Orders Spark Race to Develop Platform for $2.3 Trillion Market

Regulators and investors are suggesting increased transparency in primary issuance markets by streamlining the traditional trading process through an electronic trading platform. Source: Bloomberg A tussle is emerging between underwriters over who controls the levers of a $2.3 trillion market for new company bonds, with the U.S. as the chosen battleground. Tech firm Ipreo, jointly owned…

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Electronic Bond Trading Gains Ground

 The buy and sell side are shifting towards a computerized trading platform, as electronic buying and selling technologies are performing with greater precision and efficiency. Source: Bloomberg Electronic trading in the $8 trillion U.S. corporate-bond market is beginning to heat up. A shift toward computerized buying and selling has taken place over several years, and the…

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