Prior to Saxo, he was head
of bond trading at Nykredit.
The course is the beginning of our exploration
of bond trading in the secondary market.
The Federal Reserve Bank of New York publishes the amount
of bond trading by primary dealers — the large brokerage houses that are authorized to trade with the Federal Reserve.
Instead of perennially playing Avis to Goldman Sachs» Hertz in the lucrative but dangerous business
of bond trading, Mr. Gorman has focused on safer ways of making money.
The concentration
of bonds trading in the secondary market rises the weaker the credit quality of bonds.
In the case of Germany, Bloomberg data tells us that 51 %
of its bonds trade below zero.
Compared to commercial credit ratings, Maximum Loss compares the loss potential of a security to its trading value, resulting in limited exposure to bonds trading expensively compared to their potential losses and encouraging the purchase
of bonds trading near or below their workout values.
Not exact matches
The threat
of a
trade war would also freak out the overseas investors we count on to buy our government
bonds, and keep our interest rates at super-low levels.
The dollar has rallied through much
of the past week as concerns over the U.S. - China
trade dispute receded, and as the U.S. 10 - year
bond yield shot past 3 percent for the first time in four years.
IIF noted in a recent report that plans to privatize several state - owned enterprises beyond the Aramco deal, a doubling in the size
of the domestic stock market and the
trading of local currency government
bonds on the Saudi exchange, which began this month, all deepen the kingdom's capital markets.
The firm also notes that a recent report from the New York Fed, which we wrote about here, discusses the role that electronic and automated
trading could be playing in the
bond market, particularly how these dynamics may have exacerbated the
bond «flash crash,» an event JPMorgan CEO Jamie Dimon said is the kind
of thing that happens «once every 3 billion years or so.»
Exchange -
traded funds that track high - yield
bond indexes have been the beneficiaries
of a cash surge in recent weeks.
While I don't presume to read traders» (or
trading computers») minds (see Barry ritholtz» note this morning about ex post facto rationalizations), generally speaking there is concern that the «taper»
of long term
bond purchases will cause
bond yields (the percent
of interest paid on them) to rise.
First
of all they
trade like
bonds or stocks.
Cut in compensation
of about 10 % came in a year when the bank's profit nearly halved due to higher legal costs and a slump in
bond trading.
Prices
of the riskiest portions
of collateralized loan obligations (CLOs) have fallen 50 % as
of the end mid-December since mid-year, and are now
trading at $ 0.25 for every dollar that investors have put in the structured
bonds.
But with a miniscule RMB
bond market and plenty
of investment quotas and restrictions, the RMB is still far from free -
trading.
The Federal Reserve was a con, and in order to keep the system solvent it
traded heavily discounted
bonds in a «shadow market» only available to the elite
of the elite.
Diczok expects the 10 - year Treasury
bond to
trade within the range
of 2.78 percent to 3.38 percent this year, likely finishing above 3 percent by year - end.
The average BB rated
bond, which is what Dell's current debt is rated, is
trading at a yield
of 5.8 %.
This, the office which Rudy Giuliani led to national prominence with his late - 1980s busts
of junk -
bond king Michael Milken, Ivan Boesky, and the Drexel Burnham insider -
trading ring, is one
of the few outfits in the country that even know how to prosecute complex securities crimes.
Exchange -
traded funds that track high - yield
bond indexes have been the beneficiaries
of a cash surge in recent weeks as market participants figure the central bank probably won't raise rates in 2015, and it could be well into 2016 before anything happens.
If this
trade fight escalates, China could fire back by selling a large chunk
of the $ 1.17 trillion
of U.S. treasury
bonds it holds.
Based on where
bonds are
trading today, the market is saying about 5 %
of those corporate loans will go bust, or roughly $ 35 billion worth at the six biggest banks.
And
bonds at some well - known companies, like American Express and retailer Neiman Marcus, have been
trading at 30 %
of their original value.
Sure, some
of that had to do with Goldman beating earnings expectations, passing its Fed stress test and unexpectedly making a killing
trading bonds, but the election likely factored in too, and investors can thank Clinton for that.
Germany's benchmark 10 - year
bond yield was up almost 2 bps at 0.58 percent in early
trade, above a one - week low
of 0.56 percent hit on Friday.
For the first time ever, the average 10 - year
bond yields
of the «G3» — the U.S., Japan and Germany — are now
trading below 1 %.
Puerto Rico's benchmark GO
bond traded at 43 cents on the dollar on Friday, up from a close
of 41.06 cents on...
However, in the spring
of 2013, high - yielding stocks, which were basically
trading as
bond alternatives, got crushed.
Since the start
of 2017, Chinese regulators have announced a slew
of steps to coax financial institutions to reduce riskier activity and leverage, targeting everything from interbank lending levels to
bond trading, negotiable certificates
of deposit and entrusted loans.
Lewis, fund's chief investment officer, spent nine years at Citigroup as a director
of the bank's global special situations group, a $ 5 billion prop -
trading group that specialized in distressed debt, high - yield
bonds, and value equity.
The board has been dealing with the volatility
of publicly
traded stocks and low returns from government
bonds by diversifying into other forms
of assets, including equity in private companies and investments in infrastructure such as highways and real estate.
Mad Money host Jim Cramer goes off the charts with the help
of Carly Garner
of DeCarley
Trading, who expects the long rally in
bond prices to soon end.
The low liquidity levels are caused by a combination
of regulations, which make it less attractive for big banks to hold inventories
of bonds for dealing, and new forms
of quick, computerised
trading, which have the potential to move markets in times
of stress.
The «arbitrage» community also plays a role in these loops, especially when quoted
bond «prices» don't reflect the reality
of where the
bonds would
trade.
If Brexit - like sentiment in other nations leads to restrictions on the flow
of trade and labor, he adds, «that is going to create greater uncertainty and volatility» — at a time when some commentators believe that global stock and
bond prices are overdue for a tumble.
All they need to know, is if they can hit 98 bids on X number
of bonds that the ETF's are looking for, they can hit those bids, buy the ETF, do a redemption, where they exchange ETF's for the
bonds (to get net flat) and take out a profit if the ETF is
trading cheap enough.
They maneuver the world
of opaque, over the phone
bond trading, finding the mistakes and taking advantage
of them.
Clockwise from left: Hannah Grove, Chief Marketing Officer; Karen Keenan, Chief Administrative Officer; Liz Roaldsen, EVP, responsible for leading the Beacon digital transformation initiative; Lynn Blake, Chief Investment Officer
of Global Equity Beta Solutions; (on monitor from Dublin) Susan Dargan, Management and future development, offshore business and Alternative Investment Services; (on monitor from London) Maria Cantillon, EVP and Global Head
of Alternative Asset Managers Solutions; Martine
Bond, EVP for
Trading and Clearing; Kim Newell, EVP and head
of Global Markets Europe, Middle East and Africa, State Street; Brenda Lyons, Head
of the Specialized Products Group; Kathy Horgan, Chief Human Resources and Citizenship Officer; and Lori Heinel, Deputy Global Chief Investment Officer.
Morgan Stanley is reportedly planning to cut 25 %
of its fixed income operations, which includes commodities and
bond trading.
«The credit
trading desk at AllianceBernstein is consistently on the cutting edge,» Amar Kuchinad, CEO
of the
bond -
trading platform Electronifie, told Business Insider last year.
After plunging to a record low
of 15.95 to the U.S. dollar on September 25, the Argentine peso clawed its way back to 8.5525 on Monday as a crackdown on
trading, a
bond sale and a currency swap with China curbed transactions in both the legal and underground currency markets.
Consisting
of just two exchange -
traded funds (ETFs), one tracking stocks and the other tracking
bonds, the portfolio requires little time or effort.
The secondary market is composed
of bonds that were issued in the past and may be
traded until redeemed by the issuer.
Finding a significant increase in the number
of mini flash crashes in the early minutes
of trading on October 15, 2014 would help explain the origins
of the October 2014 U.S. Treasury
Bond Flash Crash and reduce the causal uncertainty surrounding the flash crash.
It's more expensive to
trade bonds, in terms
of bid - ask spreads or volatility or the time to get a
trade done.
Liquidity risk The vast majority
of municipal
bonds are not
traded on a regular basis; therefore, the market for a specific municipal
bond may not be particularly liquid.
A carry
trade is typically based on borrowing in a low - interest rate currency and converting the borrowed amount into another currency, with proceeds placed on deposit in the second currency if it offers a higher rate
of interest or deploying proceeds into assets — such as stocks, commodities,
bonds, or real estate — that are denominated in the second currency.
This test window is between the market's opening for regular
trading, 9:30, and the beginning
of the October 2014 U.S. Treasury
Bond Flash Crash at 9:33 [1].