The TRADE’s Crystal Ball 2021: Fixed income and post-trade

We expect to see further growth in the ETF market next year as investors assess opportunities to broaden the diversity of their portfolios through investments that provide exposure to a variety of industries, asset classes and exchanges across the globe at low cost. Source: The TRADE The European market in particular is expected to continue…

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Asia’s Best Credit Funds Say Junk Bonds Will Be Key in 2021

When global bond markets dipped in February, fund manager John Stover dove in, predicting a rebound, only to watch prices collapse as the coronavirus pandemic raged on. Stover kept buying. Source: Bloomberg “It never feels good to buy at the bottom or when things are going down,” he recalled earlier this month, describing hasty phone calls to portfolio…

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Seth Bernstein: Diversification via fixed income “if not dead, is in critical condition”

Seth Bernstein, the CEO of US$622 billion AUM asset manager AllianceBernstein, has opened the Fixed Income Leaders’ Summit US today, with an analysis of the challenges facing bond investment management and the changes necessary to overcome those challenges. Source: TheDesk “I am one of those people that does believe the diversifying role of fixed income…

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Boom in Fintech Bond Sale Platforms Risks Fragmenting Market

Bond buyers and sellers are warning that a recent proliferation of fintech platforms seeking to modernize debt sales around the world risks backfiring, making it more difficult to price deals. Source: Bloomberg The concerns follow a flurry of new technologies from New York to Hong Kong trying to drag the process of placing bonds into…

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Bond yields to stay put despite soaring global debt – Reuters poll

BENGALURU (Reuters) – Major sovereign bond yields, guided by central banks, will stay low despite soaring global debt levels and investors looking beyond fixed income securities for better returns, a Reuters poll found. Source: Reuters Following a November stocks rally, investors moved into risky assets, helping sovereign bond yields stay off March life-time lows as…

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Why Bond Investors Are Taking On More Risk

“New highs” have different meanings for the stock and bond markets. New highs in equities are cheered universally, with big numbers such as Dow 30,000 celebrated by investors sitting on presumably big gains. For bonds, new highs in prices translate into new lows in yields, given that the two quantities move inversely. Source: Barron’s On…

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ECB’s QE Pumps Give Euro Credit Market Edge Over U.S., BNP Says

Divergence between European and U.S. monetary policy is boosting the attractiveness of euro corporate credit amid continued coronavirus upheavals, according to BNP Paribas SA. Source: Bloomberg “There is less downside in European credit because it has much more robust support,” Viktor Hjort, the bank’s global head of credit strategy, said in an interview. “The ECB…

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Russell Investments Survey: Fixed Income Managers Less Risk-Averse Despite COVID-19 Concerns

Russell Investments’ latest survey of fixed income managers found 50% expect the global economy to revert to pre-pandemic levels by year-end 2021, while 48% don’t expect it to revert before 2022. The 64 bond and currency managers who responded to the firm’s Q4 survey also indicate more appetite for riskier assets. The percentage selecting investment-grade…

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