Corporate Bonds are on Shaky Ground

In its March report, IIF said “a wave of downgrades from BBB- to sub-investment-grade could force institutional investors with strict investment grade mandates to reduce exposures abruptly, resulting in ‘fire sales’”. That moment has arrived. “In the U.S., 15% of investment-grade bonds are at risk of becoming fallen angels,” reports Addenda Capital’s Yanick Desnoyers. This…

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Portfolio trading grows in choppy bond markets: JP Morgan

According to the article published by Reuters, J.P. Morgan’s credit trading desk is already handling more than three-quarters of the volume of trades this year executed in the whole of 2019 as market turmoil picks up. The turmoil unleashed by the coronavirus pandemic has forced liquidity to dry up even in the deepest parts of…

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Will Machine Learning Transform Finance?

Data may well be the natural resource that defines this century. If so, effective application of machine learning can extract its value. According to Charles Elkan, global head of machine learning at Goldman Sachs, financial services seems like fertile ground for AI to generate profit. Let Overbond introduce you to what the technology can do…

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A $10 Trillion Corporate Debt Bomb Is Waiting to Explode the U.S. Economy

Investment-grade corporate bond issuance has already exceeded this year than for the whole of 2019. U.S. companies now owe more than $10 trillion, which is nearly half of the country’s 2019 GDP of $21.5 trillion. With corporate profits remaining weak throughout the covid crisis, we are surely in for a slew of downgrades and defaults. Track financial…

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Finding market liquidity insights with data science

Congratulations to Joel Sebold and Refinitiv Labs for unlocking further potential from data science with their equity market liquidity discovery project. By combining the computer power of machine learning with creative visualizations, data science will take its rightful place in analytics space for capital markets. For fixed income market participants, explore Overbond’s suite of analytics…

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A trading tool that’s transforming the $10 trillion-plus corporate bond market

Once unwieldy and time-consuming, tech innovation is rapidly turning portfolio trading mainstream. In a portfolio trade, an asset manager picks a basket of securities to buy or sell, then analyses them on various metrics such as liquidity, inclusion in ETFs and transaction size. Utilize Overbond’s custom bond basket creation tool to construct strategies and diversify…

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The Accidental Modernization of the Fixed Income Markets

After dire predictions that ETFs would exacerbate volatility in fixed income, investors instead used the instruments to skirt many of the antiquated bond market’s structural problems. Blackrock’s Carolyn Weinberg estimates that 60 pension funds, insurers, and asset managers were first-time buyers of fixed income ETFs during the first quarter. Use Overbond’s ETF basket construction and…

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Bond Traders Aim to Separate Distress from Doom

Great thoughts from Brian Chappatta, about sifting through US corporate bonds and sorting out the companies that are merely distressed from those that are ultimately doomed. Utilize Overbond’s Market Surveillance and Fundamental Momentum tools to separate great buys from looming downgrades.  Source: Bloomberg Investment-grade bonds have become almost a commoditized asset class, given the Federal…

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