The Fed’s SMCCF buying program has two effects on the markets and trading. Firstly, its very existence creates confidence that the central bank will buoy up the corporate debt market to counter the impact of COVID-19. Secondly, it actively creates directional investment in the market which generates real liquidity. As the program is set to…
Investor interest in value-based and sustainable strategies has surged amid protests against racism and a deadly outbreak that has infected more than 8.3 million people around the world. Blackrock is doing it’s part by moving forward in fulfilling Larry Fink’s commitment to tackling the climate crisis with a slate of ESG-focused exchange-traded funds. With growing…
Corporations, borrowing at more than twice last year’s pace, have already raised more than $1 trillion in 2020 as they race to restructure older debt, pay down bank lines and raise cash to weather the recession. The Fed’s bond buying program and strong inflows from overseas investors have supported the new issuance. Outperform the rising…
With central banks doing what they can to stoke greater economic activity, interest rates look poised to stay low for the foreseeable future. Even with 10-year Treasury yields below 0.75% and 30-year yields just above 1.5%, rates can conceivably fall even further. With yield compression squeezing relative value hunters, deep learning analytical tools have never…
ESG-linked bond issuance has soared to more than $200 billion since being first introduced in 2017. Now, you will be hard-pressed to find bond investors without an explicit ESG-mandate. Overbond’s issuer analytics monitors the green bond market, quantifying green bond premiums, measuring green bond issuance options in different currencies and identifying green bond investor holding patterns. Source:…
Non-financial investment grade corporate bond issuance reached $584 billion through May, soon to eclipse 2017’s $644 billion. Those seeking broad-based exposure to the space have been funnelling capital into bond ETFs. Whether LQD, CIU, VCIT or GIGB, allow Overbond’s ETF pricer and screener converge on the best ETF for you on the basis of relative…
In light of the market volatility in fixed income that began in March, AI trades decreased materially as a percentage of total volume. “The programmatic trading that exists in credit is not equipped to handle volatility related to liquidity.” – Sonali Theisen. The market was stressed and needed human oversight. Liquidity Profiling using Overbond’s COBI pricing…
Companies strong enough to gain access to the bond markets have borrowed $1 trillion this year at the fastest pace on record. Then there are those that can’t afford to carry the debt they have, leading to the most large bankruptcy filings in the first five months of the year since 2009, during the Great…
The subject of corporate bond liquidity remains top of mind with bond funds and ETFs adapting to address the issue. For example, SKOR has removed illiquid, orphaned and small lot names from the index to mitigate liquidity risk. In contrast, Overbond utilizes machine learning in a 3-tiered liquidity script to price even the most illiquid…
After March’s redemption scramble out of corporate bond funds, investors have sent all of it back into the market, along with an additional $50 billion. This activity jars with the observation that likely the biggest default cycle in history is coming down the tracks towards us. Get ahead of looming corporate downgrades with Overbond’s market…
With trading volumes for US corporate bonds up
