Trade analytics provider Overbond has released a margin optimisation tool that uses AI technology for sell-side fixed income desks to increase their amount of request for quotes (RFQ) responses. It captures margin optimisation data and trains the model to the risk tolerance and execution style of the trading desks, categorising RFQs processed in terms…
The focus this week is on the Fed’s FOMC meeting, the BOE, and to a lesser extent Australia’s RBA. The Fed meeting, which is not accompanied by a fresh set of SEP economic and rate projections, should provide at least some guidance on coming bond purchase tapering, in terms of timing and process. On Monday…
Source: Barclays The global fixed income market represents roughly $130 trillion in debt outstanding1, dwarfing the total market capitalisation for stocks. Over the past five years, fixed income markets have seen growth in electronic trading, however it has and will continue to evolve differently than electronic trading in equities due to the differing trading styles…
Source: MTS The role of the fixed income trader is radically and rapidly transforming. As more workflow shifts onto electronic platforms, computers and algorithms play an increasingly crucial role in supporting traders by automating a vast range of processes. Automation creates opportunities to improve productivity by reducing inefficiencies and boosting performance throughout the whole lifecycle…
The source: Traders Magazine While some traditional financial services companies have more slowly transitioned to the cloud, capital markets firms have embraced cloud computing across their entire value chains — front-, middle-, and back-office. We wanted to understand the dynamics behind this rapid adoption, the most common use cases, and the types of technology most…
The highlight in Europe this week is Thursday’s ECB policy meeting, with nobody expecting policymakers in the EA and elsewhere to cling so dogmatically to the previous narrative of inflation as only a transitory phenomenon. The focus now is on what blueprint the ECB may have as an exit strategy on existing pandemic-based policies of…
Inflation remains front and center in the minds of global investors, so much so that many observers think the Bank of England may be poised to raise rates as early as the next MPC policy meeting on November 4, as the first major Central Bank to do so. That view was reinforced by the BOE’s…
The surge in energy prices, crude oil and natural gas in particular, remains a dominant driver of global markets at the moment. Government yield curves in both the US and Germany continue to steepen on rising energy cost and inflation fears, even as short yields, particularly in Treasuries, begin to pull up anchor with the…
The biggest drivers in global markets right now are US politics and the surge in global energy prices. Against this backdrop, both bond yields and stock prices have come under pressure, and may very well continue to do so in the months ahead. US Congress is now working with timetables of October 18, the date…
“The larger the trade, the more likely it is to be done by voice. The deeper into high yield you go, the more voice, and the deeper into emerging markets, the more voice,” says Vuk Magdelinic, chief executive of Overbond. That makes it harder to apply artificial intelligence to the process behind pricing a significant portion…
Just over two years ago at the onset
Although fixed income markets have been underperforming, BlackRock
