Market twists and turns challenged fixed-income investors in the first quarter, as markets responded to swings in economic and inflation data and central banks struggled to control the wheel. Then, in March, the collapse of two large commercial banks triggered a significant repricing of risk and sent markets into a skid. In this article, Scott…
Data from Coalition Greenwich showed that average daily notional volume for corporate bonds reached $45 billion last month, up 22% compared to the same time period last year. The corporate bond market has remained robust amid market turmoil, with average daily notional volume (ADNV) reaching record highs in February, according to a report by Coalition…
Fixed-income markets took a severe beating in 2022 as central banks administered monetary tightening to beat back surging inflation. While markets have seen a bounce-back, in the expectation that the tightening is close to the end, is the enthusiasm warranted? “The bounce-back that we saw earlier this year has already waned since we are at fresh highs…
The fixed income markets have seen more significant transformations in the past few years than in the previous cumulative decade. In this article, Colby Jenkins, Strategic Advisor at Aite-Novarica Group, breaks down the potential role fixed income execution management systems (FI EMS) may play within this new fixed income market structure. This week’s announcement that…
Amid the recent hype surrounding ChatGPT, Wall Street increasingly anticipates artificial intelligence will change how markets operate. A JPMorgan survey found that 53% of institutional traders believe AI or machine learning will be the technology that has the biggest influence on trading over the next three years. Last year, only 25% of survey respondents held that view. …
Systematic hedge funds are experiencing shifts in how they source and develop their front-office technology stacks, with outsourcing beginning to increase, according to new findings from Acuiti. Historically, systematic hedge funds placed high value on the development of trading strategies in-house, as this was used as a means to differentiate themselves from competitors. Hedge funds…
Over recent years, buy- and sell-side collaboration has driven algorithmic development, resulting in innovative ways of provisioning liquidity in a rapidly evolving landscape. The recent shift towards more dynamic, learning-based algorithmic models have positively contributed to the buy-side achieving trading objectives which ultimately have yielded better outcomes for all participants. And yet, despite the crystallisation…
Source: MarketsMedia MarketsMedia recently highlighted Overbond’s Corporate Bond Intelligence (COBI) showing drastically widening spreads in multiple sectors. The widening indicates declining liquidity, creating challenges for traders and companies to raise capital through debt issuance. “Conditions in European corporate bonds paint a grim picture. Market conditions have declined noticeably, even in sectors such as utilities that…
Source: Reuters Recent Reuters article highlights Canadian corporate bond issuance perking up again, rebounding after a lull 10 months. Brian D’Costa, President of Algonquin Capital said “After more than a decade of return-free risk in fixed income, current yield levels are very attractive. We haven’t seen such yield levels in the last 15 years, and…
Source: TheTrade TheTrade explores insights from the Fixed Income & FX Leaders Summit APAC in Singapore provided insights on how trading desks are evolving with automation. Martin Viseux, Head of Fixed Income Trading Asia, HSBC Global Asset Management said: “We’ve seen a big change in market structure with high volatility where the traditional banks have…
