Winning the Technology Race in Fixed Income – The Buy Side Perspective

Source: Tabb FORUM TABBForum’s Head of Fixed Income and Research, George Bollenbacher’s recent article featuring Vuk Magdelinic, CEO, Overbond explores how technology is currently being used in fixed income, and what the buy side and sell side see in future developments. Changes have been slower in fixed income than in other markets like equities and…

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Why High Yield Bonds Will Get Better

Source: Morningstar Morningstar article discusses’ bright future for high yield bonds. High yield and emerging market bonds have had a tough year as rising interest rates combined with weakening emerging market economies have squeezed funds in those asset classes. However, Frank Gambino and David Nava, who oversee the $3.3 billion RBC Global High Yield Bond…

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Bloomberg: Bankers Tout ESG Bond Bonanza Amid Credit Market Mayhem

Bloomberg article highlights increased interest in ESG bonds amid credit market downturn. The market for socially responsible credit stays open while the broader primary market sinks as a result of heightening recession risks. Although volumes have decreased, issuance of ESG products are increasing, making up 9.44% of the more than $1 trillion volume of corporate…

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Volatility in Bonds Deepens After Inflation Report

Fresh evidence of accelerating inflation rattled bond markets anew on Wednesday, sparking large swings in Treasury yields as traders shifted their bets on how the Federal Reserve and the economy might respond. Treasury yields, which rise when bond prices fall, jumped immediately after the government released new consumer-price index data, which showed broad-based inflation reaching another four-decade high….

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Reuters: Treasury Market Faces Liquidity Risks as Fed Pares Balance Sheet

Recent Reuters article highlights the concern of treasury markets facing liquidity risks as the Fed runs down its balance sheet. While the Federal Reserve is starting to let bonds mature off its $9 trillion balance sheet, volatility is expected to pick up as the market already suffers from low liquidity. Jonathan Cohn, Head of Rates Trading Strategy, Credit Suisse said…

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Bloomberg: Wall Street Faces Billion-Dollar Losses on Sinking Buyout Debt

Recent Bloomberg article highlights US and European banks’ losses on sinking buyout debt. With the Federal Reserve rushing to hike rates, credit risk premiums are surging beyond levels seen before. Nichole Hammond, Senior Portfolio Manager, Angel Oak Capital Advisors comments regarding this issue “Banks agreed to finance deals months ago and we’ve had a massive…

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Business Wire: BlackRock Projects Global Bond ETF Assets to Reach $5 Trillion by 2030

Although fixed income markets have been underperforming, BlackRock projects global bond ETF assets under management to reach $5 trillion by 2030. As bond ETFs have been gaining traction during times of near-zero interest rates, the pandemic and inflationary pressures, Salim Ramji, Global Head of ETF and Index Investments, BlackRock credits these catalysts to a “more…

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