A tech-powered approach to bond trading that prices hundreds of securities all at once just had its busiest-ever month, the latest sign that systematic methods are rapidly disrupting the world of fixed income. So-called portfolio trades are thriving, with market players harnessing exchange-traded funds to move baskets of bonds in one swoop as the pandemic whipsaws the credit cycle and liquidity costs bite. Almost $19 billion of these transactions were processed globally through Tradeweb Market Inc.’s electronic platform in October, according to the company. That was the most since it launched in early 2019, and the service has now handled volume totaling more than $150 billion. It’s a rare insight into the explosive growth of portfolio trades, which are flourishing as a quiet liquidity crisis grips the global credit market.
from FA News https://www.fa-mag.com/news/the-hottest-bond-trade-powered-by-tech-just-cleared--150-billion-58931.html
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