Coalition Greenwich (a division of CRISIL)

Primary dealers are short US$3.8 billion in IG corporate bonds, Coalition Greenwich (a division of CRISIL) reported, down 352% YoY. Kevin McPartland, head of research for market structure and technology, commented: “Time will tell if this shift to short positions is sticky. […] It is possible that Q4 is a blip driven by short-term positioning. Regardless, our research continues to point to a corporate bond market that is agency (or at most, riskless principal), which translates into a market where primary dealer bond holdings are less impactful on market liquidity than they once were.” The DESK Lucy Carter https://lnkd.in/eAjC3nBb.

"Investors want exposure to private investment activities of individuals and companies. But they cannot get hold of this in a simple way, so they need some kind of intermediary, for example a private debt fund, who can sell the loans. And people can pay large sums of money to get that access,” says Christopher Dunn, CFA, Head of Investment Management at Coalition Greenwich (a division of CRISIL). https://lnkd.in/eQe8z5Pz

More electronic trading has helped boost U.S trading volume overall. Research firm Coalition Greenwich (a division of CRISIL) said last year that about 40% of corporate bond trades are now online, up from less than a tenth a decade earlier. Bloomberg Olivia Raimonde Tracy Alloway https://lnkd.in/gNiyPPq3

Coalition Greenwich (a division of CRISIL) is excited to attend Les Journées de l'AFTE - The French Association Of Corporate Treasurers 2024 (November 25-26) in Paris, and we hope to see you there! Please stop by our stand to meet Alexia Venet and Mélanie Casalis from Coalition Greenwich. Also, we’re thrilled to sponsor a networking breakfast session where we will present “The Evolving Landscape of Corporate Treasury Resilience: From KPIs to Supply Chain Disruptions” on 26 November from 8:00 – 8:45 AM Speakers/Presenters: Duncan McCredie, President, Coalition Greenwich Mélanie Casalis, Research Director, Coalition Greenwich Alexia Venet, Relationship Management, Coalition Greenwich Would you like to attend? Please contact Alexia Venet to register for the breakfast. Registration is required and space is limited. Those attending Les Journées de l'AFTE 2024 are welcome to join us for the event. We look forward to seeing you soon!

*New report* Infrastructure is one of the fastest growing asset classes in institutional portfolios around the globe, but institutions in North America and the rest of the world are investing in the asset class for starkly different reasons. “Institutions in North America are much less interested in environmental trends and much more interested in inflation and volatility protection for their portfolios,” says Mark Buckley, Global Head of Investment Management at Coalition Greenwich (a division of CRISIL). In the U.K. and Asia, institutions see investing in infrastructure as an opportunity to participate in powerful investment trends related to the transition to green energy and digitization, while also making a positive impact on the environment. In the U.S. and Canada, the attraction is more bottom-line oriented. https://lnkd.in/edSc77Ew

According to research from Coalition Greenwich (a division of CRISIL), e-trading accounts for less than 10% of total market volume. However, 30% of global convertible bond investors are now using electronic trading tools – up two percentage points from 2022 – and the average percentage of volume traded by electronic traders has risen by three percentage points to 34%. The DESK Lucy Carter https://lnkd.in/e7MsfwEs

New Coalition Greenwich (a division of CRISIL) study found that over the next year, 34% of respondents intend to increase their use of multi-dealer platforms (MDPs), while only 5% thought there would be a reduction. “MDPs offer a range of benefits, including ease of use, workflow integration and best execution,” said Stephen Bruel, senior analyst on the Market Structure and Technology team at Coalition Greenwich. “They are an attractive option for buy-side traders who want to optimise their trading and achieve best execution.” The TRADE News Wesley Bray https://lnkd.in/eMarnGu3.

*New report* Based on interviews with buy-side FX traders globally, a recent Coalition Greenwich (a division of CRISIL) study found that over 40% of respondents cited uncompetitive pricing as the primary reason to reduce their trade flow to a dealer. "The buy side is becoming increasingly sophisticated in their approach to FX trading, and dealers must adapt to meet their evolving needs," said Stephen Bruel, Senior Analyst on the Market Structure & Technology team. "Pricing and quality of coverage are now the key drivers of a dealer's success, and those who fail to deliver on these fronts risk losing business to their competitors." https://lnkd.in/e-skiV8J

*New report: November Data Spotlight -U.S. Credit Trading: 'Dealer Corporate Bond Holdings Go Negative' by Kevin McPartland* The October corporate bond market felt calm compared to the record-breaking September (2024), with market volume, e-trading and new issuance metrics down month over month. A year-over-year comparison, however, shows continued growth amplified by dealers and investors preparing for (and speculating on) the election outcome and the direction of the Fed. https://lnkd.in/e-38SHsX

*New report: November Data Spotlight - U.S. Rates Trading: 'Jobs, Election Bookend U.S. Treasury Market Volatility and Volume', by Kevin McPartland* October 31, 2024 was the most active day in U.S. Treasury market history, with $1.54 trillion of volume traded. While month-end volume spikes are nothing new, the activity capped off a month of volatility, catalyzed by a stronger than expected jobs report on October 4, leading the MOVE Index to jump 24% in a single day. https://lnkd.in/eG5qjtXC