Capital is expensive and getting more expensive. But the problem is proving a much harder one to manage in Europe, with European banks continuing to deleverage and already complying with the principles of Basel III while US banks have their capital houses (relatively) in order. The impact of this dichotomy is broad, but one impact […]
Tag: bonds
Greenwich Associate’s Market Structure Trends to Watch in 2014
The year 2013 will likely go down as the year of mandatory clearing. Once ignored by eager financial market professionals as boring back-office stuff, collateral management, credit limits and all other things clearing stood front and center in 2013 as swaps went from a 10-day clearing cycle to a 10-second clearing cycle. Given the progress […]
Apparently TRACE hurt bond market liquidity – but there’s a catch
A study was released today from two very smart guys at Harvard and MIT that shows prices improved and liquidity declined after TRACE was thrust upon the bond market about a decade ago. As you can see from my quote in the Bloomberg News story below, the results aren’t terribly shocking. The extra transparency brought […]
The Impacts of Volcker on the Corporate Bond Market
I recently spoke with Rashad Kurbanov who is a Managing Director at consulting firm Investance in NY. We had an interesting discussion about how the credit markets might evolve in the coming months, with corporate bonds impacting CDS liquidity and vice versa. This is a topic I will continue to dig into in great detail […]
My conversation with Benchmark Solution's CEO Jim Toffey
Jim Toffey, one of the co-founders of Tradeweb and general e-trading pioneer, is heading up a pretty fascinating new venture. Using ultra sophisticated analytics Benchmark has created a market data service that streams corporate bond and single name CDS prices every 10 seconds even when the instruments haven’t traded in hours (or days or weeks). […]