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…
Titans such as Microsoft, Apple and Home Depot have been among the beneficiaries of the Fed’s bond buying program. Although the purchases have been light, questions have been raised over “moral hazard” as the Fed buys debt from these companies that don’t seem to need the central bank’s help. Track for dislocations in the corporate…
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…
The mammoth bond market has long been the old-school bastion of the financial world, but the COVID-19 pandemic has cast a light on its future – and it looks electronic. As an example, around 45% of the European fixed-income market is electronically traded, versus 38% a year ago, Greenwich Associates estimates. Embrace the new generation…
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…
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…
With a higher-running yield, spreads now have to widen more and faster for price losses to overcome the large yield advantage that comes from holding credit. Source: Seeking Alpha As a professional bond manager glued to a screen watching prices every day, it’s hard to fathom that just a few weeks ago when March began…
The OECD warns of lower overall credit quality in the current stock of outstanding corporate bonds, with higher payback requirements, longer maturities and inferior covenant protection compared to other credit cycles. Source: Nasdaq PARIS, Feb 18 (Reuters) – The build-up of corporate bonds has hit unprecedented levels since the 2008 financial crisis and created a…
Investment-grade corporate bond issuance has reached $140 billion this month, the second strongest January in the past decade behind 2017. Source: The Wall Street Journal Corporate bond prices pushed higher Friday, extending a rally that has spurred a wave of issuance by companies of all kinds. New bond sales by U.S. high-yield and investment-grade companies…
As sophisticated fixed income asset managers are getting smart, Finra wants to get smarter with the use of Machine Learning for Market Surveillance Source: Waters Technology The Financial Industry Regulatory Authority (Finra) is in the process of expanding its use of machine learning for market surveillance as it continues to refine its algorithms to trace…
LONDON, UNITED KINGDOM, ENGLAND, February 27, 2024 /EINPresswire.com/
