Will Apple Bring Sticker Shock to Credit Markets?

The average yield spread on double-A corporate bonds has narrowed by more than 50 basis points since Apple’s last offering, suggesting the iPhone maker could lock in a 10-year rate around 1.25%. To put that in context: Before this year, the U.S. government itself had never borrowed so cheaply. With corporate spreads compressing to historic…

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Fed slows corporate debt purchases to trickle

CreditSights analysts combed through the Fed’s latest portfolio data for trends and found the central bank’s daily purchases dwindled to about $21 million on average through July 30, down from about $180 million of daily buying when the program kicked off in May. The question is where do corporate bond spreads go once the market…

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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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