The Changing Face of the Corporate Bond Market

European Commission to launch public consultation on ways to improve market functioning Source: The Wall Street Journal The European Commission wants answers to an intriguing question: Why is it becoming harder for people to trade corporate bonds, even though companies are issuing more of them? The commission—the executive arm of the European Union—plans to launch a…

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Green bond issuers are poised to charge a premium

 Demand for green bonds and other ethical investment securities is raising the prospect of the market developing a premium over conventional debt. Source: Financial Times Growing demand for ethical investment securities such as green bonds is raising the prospect of the market developing a premium over conventional debt. As volumes of environmentally friendly and socially…

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Is Canada’s economy just right for bonds?

 How does Canada’s economic environment today compare and contrast with the country’s Goldilocks period of a decade ago? Source: BlackRock For those too young to remember, from 2004 to 2007, fixed income markets witnessed a period of low volatility, even as central banks were raising rates and the yield curve flattened. GDP growth was steady,…

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Green bond issues hit record high on ‘sustained global momentum’

 Green bond issuance hit a record high this year, with China and France taking the biggest shares. Source: Financial Times Green bond issuance hit a record high in the third quarter of this year, demonstrating booming investor demand for ethically labelled fixed income instruments. According to new figures from credit-rating agency Moody’s, nearly $95bn of…

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Tech sector leads pullback for investment grade debt market

Bonds sold by Apple, Sprint, Oracle, AT&T and Qualcomm suffer from pressure on market. Source: Financial Times Bonds sold by some of the country’s largest technology, media and telecommunications companies have come under pressure this month, buffeted by sparring in US Congress over tax reform and as investors face a spate of multibillion-dollar new debt…

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E-trading picks up pace in corporate bond market

Latest research shows electronic bond trading continues to grow as providers add data and analytics tools to draw in investors. Source: The Trade The use of electronic trading for corporate bonds has surged significantly over the past few years, with MarketAxess being the preferred e-trading platform according to new research. A study from Greenwich Associates…

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World’s biggest bond market braces for the week that could change everything

This week is fraught with peril for Treasuries traders, no matter if they’re bulls or bears. Source: Financial Times The next five trading days will bring a torrent of market-moving information: President Donald Trump is poised to finally announce his nominee to lead the Federal Reserve; U.S. central bankers have an interest-rate decision to make;…

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