The US junk bond market has begun wavering on rising inflation worries, raising the risk that the powerful rally since the depths of the pandemic in the debt issued by the riskiest corporate borrowers may be coming to an end. Source: Financial Times The high-yield bond market has been a shelter for investors seeking to…
LONDON — Euro zone government bond markets were broadly steady on Tuesday, looking past a surge in inflation in the currency bloc to the likelihood that hefty monetary stimulus will remain in place for some time. Source: Financial Post Data showed inflation in the 19 countries sharing the euro accelerated to 2% in May from…
LONDON — A lessening of inflation fears saw euro zone government bond yields edge down for the third day in a row on Tuesday, with Italy’s 10-year yield down 5 basis points, as the market continued to calm down from last week’s sell-off. Source: Financial Post Last week, Germany’s 10-year Bund yield rose to two-year…
A corner of Europe’s credit market is luring investors as the threat of rising government yields fuels demand for assets that can protect bond holdings from the risk of interest-rate hikes. Source: Bloomberg Floating-rate notes, bonds with variable coupons as opposed to the fixed income attached to most debt, have seen a rise in issuance…
Euro zone bond yields fell on Monday, pulling back from multi-month highs as markets took time out from a recent sharp selloff. Source: Reuters A recovering economy that could encourage the European Central Bank to slow the pace of its emergency bond purchases, a pick up in the COVID-19 vaccine rollout that boosts the growth…
Bond markets have for years been seemingly close to a tipping point when it comes to electronic trading, yet they could never quite breakthrough. Yet those who closely follow technological advances and market structure were unwavering. “The slow and steady change that has occurred over the past decade will ultimately be seen for the revolution that…
TORONTO, ON and NEW YORK, NY — JANUARY 21, 2021 — Overbond continues to lead the way in the automation of global fixed income trading. The provider of AI quantitative analytics for institutional fixed income capital markets is now the first to integrate Euroclear LiquidityDrive settlement-layer data for fixed income trade automation purposes. “The lack…
BlackRock Inc., which oversees $7.8 trillion in assets globally, remains constructive on risk assets as the vaccine rollout, fiscal and monetary support and healthy consumer demand will drive a “significant earnings recovery.” That’s likely to lead to new investment and a multiyear expansion, according to portfolio managers for the BlackRock High Yield Bond Fund, David…
The risk-of-default ratios for consumer industries have decreased from higher peaks earlier this year, but they are still trending above the levels they enjoyed before the coronavirus pandemic. Source: S&P Global Drug retailers, department stores, and the travel and leisure industries — considered the most vulnerable sectors by S&P Global Market Intelligence’s median one-year market…
Great paper put out by colleagues at UCLA, UIUC and Philly Fed on the topic of corporate bond liquidity during the Covid-19 pandemic. One of the more interesting findings was that not only did liquidity conditions improve for bonds that were eligible for the Fed’s lending/purchase programs, but also for bonds that were ineligible. Hence,…
Research of 300 post-trade experts including custodians and
