Investors Binge on Convertible Bonds as Issuance Soars

Traditionally issued by high-growth companies, these securities have drawn tourism and travel companies who need to raise cash Source: WSJ Companies hit hard by the coronavirus pandemic flooded the market this year with the most convertible bonds since 2007. Investors who scooped up these securities have been rewarded with strong returns. Travel and hospitality companies including…

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Smart Order Routing (SOR): The Next Frontier in Fixed Income Trading Automation

SOR has been enabling automation in equities asset class for two decades. It’s now poised to enhance the bond market Increases in fixed income electronic trading volumes have driven enhancements in trading desk operations over the previous five years, making the lives of traders easier in today’s natively digital world. Trading workflow enhancements, however, that…

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Buy-side fights back against primary market pressure

Source: The Desk As new platforms promise to increase efficiency in bond issuance, buy-side firms are looking for leverage to drive change, and not only through technology. The US debt markets had issued US$1.92 trillion of bonds by September 2020, with US$1.4 trillion raised in the first half alone, according to Refinitiv data. That peaked…

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Corporate Bond Trading Seen Lacking Key Data in Electronic Era

Source: Bloomberg Corporate bond market participants should provide more granular data when they report trades to give dealers additional insight into their clients and investors a better understanding of where liquidity is, according to a report from research firm Greenwich Associates. New standards are necessary as electronification intensifies the need for greater transparency, according to…

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Is Fixed Income Ready for Pre-Trade Analytics?

Source: Markets Media Over the past few years, regulatory and competitive pressures have driven a steady rise in the adoption of transaction cost analysis (TCA) in the fixed income space. Market participants are under increasing scrutiny to demonstrate best execution, manage outliers and review their own performance. Primarily, participants have turned to post-trade analytics to…

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Canada, U.S., UK, Australia and New Zealand only major bond markets now without negative rates — if they go, we’re in trouble

With Canada, US, UK, Australia, and New Zealand the only major bond markets without negative rates there lies a great threat to the financial system should these remaining major markets dip into negative territory. Although former Fed Chairman Alan Greenspan does not see this as “that big of a deal” investors would certainly take the…

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Trump and Biden are the ‘diametric opposites’ of what the US economy needs

With the US Presidential election just around the corner, markets are poised to experience increased volatility. Saxo Bank’s chief economist, Steen Jakobsen, stated that both Trump and Biden would spend huge amounts of money and lean on the Fed for supporting easy financing conditions and neither of them would seek deep reform. Regardless of who…

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Goldman Sees $470 Billion Boost to ECB Pandemic Bond Buying

With Euro-zone inflation weakening further last week, forecasts for ECB’s emergency asset-purchasing program (PEPP) are expecting the program to be extended until the end of 2021, according to Goldman Sachs. The shifting expectations for the program will surely cause short-term volatility in the EU bond market. Navigate the changing sentiment in the market and anticipate…

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Corporate bond markets need more transparency – not less

The prices dealers quote on electronic venues such as Tradeweb and MarketAxess are indicative and only valid for small-size tickets. The real market for institutional block trades tends to be far from the screen price. The lack of dependable data makes it difficult to agree prices and execute orders quickly, especially during times of market…

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