BlackRock Says Buy Covid-Sensitive Bonds on Recovery Prospects

BlackRock Inc., which oversees $7.8 trillion in assets globally, remains constructive on risk assets as the vaccine rollout, fiscal and monetary support and healthy consumer demand will drive a “significant earnings recovery.” That’s likely to lead to new investment and a multiyear expansion, according to portfolio managers for the BlackRock High Yield Bond Fund, David…

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Deutsche Bank Sees Wall Street Trading Surge After Pfizer News

Deutsche Bank AG has seen a surge in trading across Wall Street since the U.S. election and news of a possible coronavirus vaccine, sustaining a rally that boosted third-quarter revenue across top investment banks. “The past couple of days since Pfizer’s groundbreaking announcement and what we all hope will be an inflection point in this pandemic, the street has…

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JPMorgan Asset Says to Pick Corporate Debt Over Stocks in Near Term

Investors should focus more on corporate bonds than stocks in the near-term given the recent resurgence in the pandemic and political uncertainty in the U.S., according to JPMorgan Asset Management. Source: Bloomberg There’s “room for more consolidation in global equities,” Tai Hui, the $2.3 trillion asset manager’s chief Asia market strategist wrote in a note….

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Corporate bond markets need more transparency – not less

The prices dealers quote on electronic venues such as Tradeweb and MarketAxess are indicative and only valid for small-size tickets. The real market for institutional block trades tends to be far from the screen price. The lack of dependable data makes it difficult to agree prices and execute orders quickly, especially during times of market…

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Investors Are Ramping Up Bets Against Bonds in the ETF Market

The all-around bullishness in fixed income ETFs may be coming to an end. With traders newly shorting $544 million worth of LQD, the ETF dipped 1.2% over the past month after gaining 19% since March 23rd. KatherineGreifeld states in an article published by Bloomberg: “Short sellers may be thinking that the yield curve has bottomed out…

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Buy-side issues framework to standardise bond issuance

The Credit Roundtable, a buy-side lobby group for bondholder protection has issued an ‘Investment Grade Primary Best Practices Framework’ designed to improve bond issuance. The measures are meant to standardize a process that has been historically fraught with inefficiency and unnecessary costs to investment managers. This is an issue Overbond is very familiar; check in…

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Bond Trade Loved by Wall Street Nears Another $100 Billion

If necessity is the mother of invention, then the pandemic may help bring the staid corporate bond market into the 21st century and give its traders the speed and efficiency that’s routine among stock dealers. Larger portfolio trades routinely have more than 500+ bonds with varying liquidity profiles. Use Overbond’s custom basket creation feature to…

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The Fed’s $250 Billion Debt-Buying “Index” Loophole

Last week, the Fed announced a third category in their SMCCF program: “Eligible Broad Market Index Bonds”. This new category allows the Fed to immediately begin buying individual corporate bonds in much larger volume than previously anticipated. Thanks to #Dan Krieter for shedding some light on this development. With this door now opened, the question…

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