Counterparties are increasingly adopting quantitative investing techniques such as systematic alpha and algorithmic trading, merging of fundamental discretionary and quantitative investment styles, consumption of increasing amounts of alternative data, and adoption of new methods of analysis such as AI analytics like Overbond COBI-Issuance algorithm described in this white paper. Source: Overbond Fixed Income Artificial Intelligence…
As the market could be riskier early next year with supply lining up, CLO managers are willing to take the plunge now rather than waiting for the new year’s issuance window. Source: Bloomberg It’s been an expensive month to price new collateralized loan obligations in Europe. But the fear of what lies ahead is spurring…
Canada’s cumulative 5-year budget deficit to rise to $83.5 billion as the Liberal Government unveiled corporate tax breaks to businesses worth $10.5 billion, allowing businesses to write-off capital investments more quickly. This decision is bound to increase government borrowings and debt issuances. Source: Bloomberg Justin Trudeau is offering tax breaks to business instead of cutting…
Capital markets are poised to be transformed by artificial intelligence (AI). Most firms have focused on using technologies to reduce costs, but AI has the potential to create value across organizations in new transformative ways. Source: Accenture Ours is an industry that has shown a willingness and ability to capitalize on emerging ideas, using them to differentiate…
The Bank of Canada hiked interest rate and acknowledged for the first time in more than a decade it expects to completely remove monetary stimulus from the economy. Source: Financial Post The Bank of Canada can finally see “home” on the horizon. Governor Stephen Poloz and his deputies on the Governing Council raised the benchmark…
As U.S. stocks slumped, big wagers on higher yield and flatter curve were challenged leading to futures and options positions being abandoned. Source: Bloomberg Volatility in the U.S. Treasury market appears to have forced traders out of what just a week ago appeared to be surefire wagers on higher yields and a flatter curve. Flight-to-quality…
The revision of the NAFTA agreement has eased concerns of an economic slowdown for the United States, Mexico and Canada causing U.S. government bond prices to fall along with a rising yield. Source: Wall Street Journal U.S. government bond prices fell Monday as the revision of the North American Free Trade Agreement eased investor concerns…
The Federal Reserve has raised the US short-term interest rate signalling it will go ahead with plans to tighten policy despite concerns of a trade war. The Fed will tighten monetary policy as the unemployment heads towards record lows and wage growth accelerates at its quickest pace in nine years. Source: Financial Times The Federal…
The Royal Bank of Canada will be the first Canadian financial institution to sell bail-in eligible securities. The bail-in eligible securities can be converted into equity should a bank get into trouble and will eventually replace deposit notes for Canadian banks. Source: Bloomberg Royal Bank of Canada is getting ready to sell the country’s first…
The yield curve has fallen to its flattest level since the 2007-09 recession which can cause bond-market investors to take notice and start bracing for a possible inversion. Traditionally safe assets like long- and short-term bonds have fared a bit better following yield-curve inversions. Source: Wall Street Journal The yield curve—the difference between the interest…
Verizon Entering Green Bond Market Fuels Optimism That
Green Bond Market in-line to hit Tremendous Valuation
