Russell Investments Survey: Fixed Income Managers Less Risk-Averse Despite COVID-19 Concerns

Russell Investments’ latest survey of fixed income managers found 50% expect the global economy to revert to pre-pandemic levels by year-end 2021, while 48% don’t expect it to revert before 2022. The 64 bond and currency managers who responded to the firm’s Q4 survey also indicate more appetite for riskier assets. The percentage selecting investment-grade…

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Fed’s ETF Purchases Have Changed Markets Forever

Last week’s public spat between Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell may have set an end date for the central bank’s unprecedented intervention in U.S. credit markets. But make no mistake, the legacy of this episode will most likely permanently change investors’ mindset during periods of crisis. Source: BNN Bloomberg In particular, the Fed’s swift…

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Toronto Airport Eyes Bond Market Opportunistically as Notes Jump

Greater Toronto Airports Authority is monitoring bond market conditions as its most recent debt deal outperforms the wider Canadian dollar corporate bond market. GTAA’s C$500 million ($382 million) of secured bonds due 2028 were quoted Friday at a spread of around 88 basis points over similar-duration government securities, or around 21 basis points tighter than where they were…

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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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Investors Binge on Convertible Bonds as Issuance Soars

Traditionally issued by high-growth companies, these securities have drawn tourism and travel companies who need to raise cash Source: WSJ Companies hit hard by the coronavirus pandemic flooded the market this year with the most convertible bonds since 2007. Investors who scooped up these securities have been rewarded with strong returns. Travel and hospitality companies including…

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Case Study: Buy-Side Algo Credit Trading

Credit and Rates Trading Workflow Automation Vest Execution Pricing and Liquidity Risk Analytics Overview and Current Process Buy-side asset managers are rapidly embracing artificial intelligence applications to price fixed income securities algorithmically in live trading execution environment or for purposes of end of day reconciliation and portfolio construction. The current fixed income capital market data…

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Buy-side lags behind sell-side in adoption of machine learning and artificial intelligence

Buy-side firms are falling behind the sell-side in the bid to scale up adoption of artificial intelligence (AI) and machine learning (ML) technologies, according to an in-depth report from Refinitiv. Source: The TRADE Refinitiv polled 120 asset managers and found 28% had deployed ML and AI in multiple areas, describing it as core to their…

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Smart Order Routing (SOR): The Next Frontier in Fixed Income Trading Automation

SOR has been enabling automation in equities asset class for two decades. It’s now poised to enhance the bond market Increases in fixed income electronic trading volumes have driven enhancements in trading desk operations over the previous five years, making the lives of traders easier in today’s natively digital world. Trading workflow enhancements, however, that…

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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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Buy-side fights back against primary market pressure

Source: The Desk As new platforms promise to increase efficiency in bond issuance, buy-side firms are looking for leverage to drive change, and not only through technology. The US debt markets had issued US$1.92 trillion of bonds by September 2020, with US$1.4 trillion raised in the first half alone, according to Refinitiv data. That peaked…

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