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…
Much has happened in the past week in the run-up to the US elections with strong implications for the US rates market. Some managers, like Nick Maroutsos from Janus Henderson, are positioned for a back-up in long-end rates on the back of a democratic sweep. Others are not quite so sure with what happened in…
Managing technical debt, in the development of new AI models, can be expensive and can lead to significant cost overages throughout the project. This is primarily driven by the need for AI models to scale and adjust to different market conditions, liquidity and volatility situations, where vastly different data volumes and modelling approaches are required. …
In emerging market news, India bond traders are on edge amid conflicting Reserve Bank of India signals. Just days after announcing measures to lower yields, the RBI has given traders signals about their reluctance in pushing rates down further. This stems from the RBI going back on their word and purchasing bonds at higher than…
With the Federal Reserve expected to take a more relaxed approach on inflation, something that became known at the virtual Jackson Hole Symposium on August 27th, bond traders have since been positioning for a steeper yield curve. Overbond AI models optimize curve flattening and steepening on corporate spreads and sovereign underlying benchmarking against a large number of…
A low-yield environment is here to stay. The US Federal Reserve looks likely to keep short-term interest rates near zero for five years or possibly more. This brings upon certain challenges for investors looking for higher fixed-income yields. Use Overbond’s Similar Bond Screening feature to identify the highest-yielding bonds with optimal liquidity profiles. Source: Bloomberg…
With the Chinese economy in a precarious situation, some fund managers are bracing for defaults on domestic Chinese debt to hit record highs this year. The situation is similar in the West, with US corporations already experiencing a slew of downgrades and defaults. Monitor and sidestep these delinquencies with Overbond’s Probability of Default feature that measures company…
The all-around bullishness in fixed income ETFs may be coming to an end. With traders newly shorting $544 million worth of LQD, the ETF dipped 1.2% over the past month after gaining 19% since March 23rd. KatherineGreifeld states in an article published by Bloomberg: “Short sellers may be thinking that the yield curve has bottomed out…
If the recent spike up in U.S. inflation numbers is a sign of things to come for global markets, that could prove especially bad news for debt investors in certain EM markets like Indian, Russian and Mexican. Message us to learn to monitor macro risk factors using Overbond’s market surveillance tools. Source: Bloomberg The fixed-income…
The Credit Roundtable, a buy-side lobby group for bondholder protection has issued an ‘Investment Grade Primary Best Practices Framework’ designed to improve bond issuance. The measures are meant to standardize a process that has been historically fraught with inefficiency and unnecessary costs to investment managers. This is an issue Overbond is very familiar; check in…
Just over two years ago at the onset
Although fixed income markets have been underperforming, BlackRock
