19 - 20 October, 2021
Fixed Income Leaders 2021 Blog
Highlights from the discussions at the Fixed Income Leaders Summit in Barcelona, 2019.
An increased reliance on the primary market is impacting trading desks’ efficiency in secondary trading. Frustration with the issue is leading asset managers to look for a reform of existing processes. Oscar Kenessey, head of fixed income, derivatives and currency trading at NNIP, and Eric Heleine, head of the trading desk at Groupama Asset Management, make the case for several lines of reform.
Les gestionnaires d’actifs doivent aujourd’hui surmonter l’inefficacité opérationnelle sur les marchés primaires; nous avons discuté avec Doriane Geyler-Rojas et Abdoulaye Ba de Natixis Asset Management Finance pour savoir comment ils essaient de surmonter ces obstacles.
Asset managers need to overcome operational inefficiency in primary markets today; we spoke with Doriane Geyler-Rojas and Abdoulaye Ba of Natixis Asset Management Finance to learn how they are trying to overcome these hurdles, through a better use of data, access to platforms and potentially through regulatory change.
When over-the-counter markets are suffering from a limited liquidity supply, buy-side firms can struggle with price formation and counterparty selection; Lee Bartholomew, head of derivatives product R&D in fixed income at Eurex, outlines the strategies and skills that traders should consider when assessing instrument selection.
By bringing together the dealer-to-dealer and dealer-to-client repo markets, asset managers can gain real advantages from trade clearing to straight-through-processing; Oliver Clark, head of product and Tim Martins, head of product for repo and money markets at MTS discuss.
The use of fixed income exchange-traded funds for long term investment as well as for shorter term liquidity management and portfolio transitions. Tom Stephens, head of international ETF Capital Markets at JP Morgan Asset Management, says that changes in the regulation has increased transparency, changes in market participants has increased liquidity and changes in market structure has increased price formation, all of which has improved institutional access. The next step for the market will be the development of active ETFs and evolving smart beta ETFs that give better exposure to the right returns and risks.
Jim Goldie, head of ETF Capital Markets (EMEA) at Invesco, discusses his views on the growth in the use of fixed income ETFs, how they can have tighter spreads than the index and provide cost efficient execution, with Hamish McArthur of ETF TV.