Liquidity in the corporate bond market is tough. We’ve written about it time and time again. At a high level we see two solutions. One, inject new electronic trading tools and liquidity providers into the existing corporate bond market to better match buyers and sellers (a theme discussed in our 2014 European Fixed Income Study). Two, […]
SEF volumes died last week – so when and where will they return?
Turned out the first week of mandatory SEF trading was a Big Bang, just in the wrong direction. Reported SEF volumes for interest rate swaps fell off a cliff for the week of February 17th, dropping 64% (revised down slightly as new data became available) from the 2014 weekly average SEF traded volume (thanks as […]
New Greenwich Report: As Credit Market Liquidity Suffers, Institutional Investors Seek Alternatives
This is my first official research piece since joining Greenwich Associates this past summer. It is available to Greenwich clients. If you’re not sure if you’re a client, or don’t have a login to the website, let me know. Enjoy. New Greenwich Associates Report Analyzes Role of CDS, ETFs and SEFs Tuesday, October 22, 2013 […]
The Economist: Not with a Bang
I talked to an Economist reporter based in Paris on Wednesday (October 2) about what the first day of SEF trading means to the market. I think the key point to note on the quote below is that we’re talking about the day 1 impact. The longer term impact on the the market I believe […]
Swap Execution Facility Trading Volumes: Here are the Real Numbers
There are some really good parts of the SEF rule, and this in my view is one of the best: Core Principle 9 requires a SEF to make public timely information on price, trading volume, and other trading data on swaps to the extent prescribed by the Commission. The result? SEFs posting daily volumes on […]
A (Greek) Default By Any Other Name
Back in October I wrote about the impact of an impeding Greek default on the CDS market. I concluded that in the shadow of Dodd-Frank, the decision on whether the Greek bailout triggered a CS payout was a minimal consequence. With ISDA’s announcement that the European Central Bank’s fix to the Greek bond crisis will […]
UBS Launches New E-Trading Platform For Credit-Default Swaps (WSJ)
I’ve written quite a bit about the fate of single dealer portals (SDP) and SEF aggregation. UBS has finally come forward with what its been working on lately, which involves both its SDP and SEF aggregation. Having seen the demo I can assure you that what they have is real and I believe gives us […]
Will poor corporate bond liquidity drive the market to CDS?
This is another segment from our Fixed Income Trading 2012 event on January 24th. My panel discusses the impact of the Volcker rule on the credit market – the market likely to be the hardest hit by the proposed new rule.
Futures On Credit-Default Swaps Seen As Natural Evolution (Wall Street Journal)
If Congress really had its way (well, the Democrats anyway) than all swaps would have been forced to look and trade like futures. If you’re reading this blog than you know that would be a classic square peg, round hole. Case in point: Eurex launched iTraxx futures some years back and no liquidity every developed. […]
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 […]