Tech-Powered Bond Trades Are Booming as Liquidity Vanishes
- Portfolio trades more popular than ever as liquidity dries up
- Tradeweb figures point to rapid growth alongside ETF adoption
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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.