Fixed Income

Three recent publications suggest that the loose path of regulation for hedge fund risk may be coming to a close. One in particular has some sharp teeth; we may see…

Analysis of Darrell Duffie’s paper on centralized clearing of US Treasuries (Premium)

June 9, 2020

CCP, cleared repo, Fixed Income, Market infrastructure, Repo

CCPs, Darrell Duffie, topstory, US Treasuries

Stanford Professor Darrell Duffie released a paper last month through the Brookings Institution discussing centralized clearing of US Treasuries. He organizes the arguments about how and why clearing should move…

Is there offshore demand for Chinese bonds as collateral? (Premium)

November 14, 2019

China, Collateral Management, Fixed Income

Bonds, China, collateral, offshore, onshore, topstory

At ¥95.5 trillion (US$13.7 trillion), the Chinese bond market is big and growing. Chinese institutions would like to see Chinese bonds accepted as collateral offshore. The effort faces obstacles however.…

China and Japan are holding fewer US Treasuries. What happens next?

November 21, 2018

Asia, China, Fixed Income, Interest rates, US

China, Japan, topstory, US Treasuries

China and Japan together hold 35% of US Treasuries outstanding, according to new US Treasury data. But that figure is decreasing and there are no big buyers stepping up to…

Treasury issuances and Fed rates are changing technicals in the short end (Premium)

June 20, 2018

Cash management, Federal Reserve, Fixed Income, Interest rates, Investments, Liquidity Management, Money Market Funds, Repo, Short Term Interest Rate Benchmarks, SOFR, US

Fed Funds, Repo, SOFR, topstory, US, US Treasury

As the US Treasury moves to add even more to short dated securities to fill their deficit hole, while at the same time the Fed raises rates and slowly unwinds…

Can Fixed Income ETF liquidity hold up against underlying liquidity changes? Panel respondents say yes

April 26, 2018

Anna Reitman

ETFs, Fixed Income, Liquidity Management

ETFs, Fixed Income, Liquidity, topstory

The Fixed Income ETF marketplace is undergoing scrutiny as liquidity gravitates to these products and away from the underlying. The fact is, ETFs are easier to trade than individual fixed…

What we heard and said at the first Asian Prime Collateral Forum

October 30, 2017

Richard Stinchfield

Asia, China, Collateral Management, Fixed Income, Market infrastructure, Prime Brokerage, Repo

ASEAN, Asian Prime Collateral Forum, Data repositories, Prime Brokerage, Repo, topstory

Finadium was invited to present last week at the first ever Asian Prime Collateral Forum, hosted by the Korean Institute of Finance. The Prime Collateral Forum brought together more than…

Finadium’s strategic plan for 2017-2018

July 27, 2017

Derivatives, Fintech, Fixed Income, Repo, Securities Lending, Technology

collateral, derivatives, Finadium, fintech, Fixed Income, securities finance, topstory

Financial markets are changing at a rapid pace; from front to back office and across products, anyone can see that today’s markets are not what they were 10 years ago.…

A CCP for US Treasuries? Here are some pros and cons (Premium)

July 19, 2017

CCP, Dodd-Frank, Fixed Income, US

Fixed Income, House Financial Services Committee, market structure, Nasdaq, topstory, US, US Treasuries

The US House Subcommittee on Capital Markets, Securities, and Investment held an interesting hearing last Friday on US fixed income market structure. Although the product range is extremely diverse, witness…

Finadium announces Rates & Repo Conference in NYC Nov 1

June 29, 2017

Fixed Income, Investments, Regulatory, Repo, US

Conference, Finadium, Rates & Repo, topstory

Rates & Repo is a new conference for cash investors and their service providers. We invite money funds, securities lending cash reinvestment desks, treasury departments and other cash investors to…

Lessons for Peer to Peer in securities financing from Peer to Peer in cash fixed income (Premium)

June 22, 2017

Credit Exposure, Fixed Income, Investments, Market infrastructure, Repo, Securities Lending, Technology

All to All, direct, MarketAxess, Open Trading, peer to peer, topstory, Tradeweb

Peer to Peer is picking up steam in the cash fixed income world. MarketAxess and Tradeweb now have offerings that have generated real interest from major asset managers. What will…

Thursday News Roundup: US Treasuries, Basel III adoption, BofE white paper (Premium)

October 27, 2016

Bank of England, Basel III, Federal Reserve, Fixed Income, Investments, Repo, US

Bank of England, Basel III, Federal Reserve, topstory, US Treasuries

The news moves fast when regulators speak their minds (especially if that involves rolling back the Leverage Ratio). This edition of News Roundup looks at the future of the US…

BlackRock + ICAP = financial technology powerhouse? (Premium)

June 6, 2016

Fixed Income, Technology

Blackrock, financial technology, ICAP, topstory

On May 26, 2016, BlackRock took a 4.7% equity stake in ICAP, which is changing its name to NEX Group shortly. Including securities borrowed and Contracts for Differences, BlackRock now…

Responses to Treasury Market Structure RFI encourage repo clearing (Premium)

May 5, 2016

CCP, Fixed Income, Investments, Repo, SEC, US

market structure, repo CCP, topstory, treasuries, US Treasury

In January 2016 the US Treasury issued an RFI, “Notice Seeking Public Comment on the Evolution of the Treasury Market Structure.” The questions were pretty broad, covering “changes in technology,…

Federal Reserve on fixed income liquidity (disappointing) and blockchain in clearing and settlement (downright positive) (Premium)

April 20, 2016

Blockchain, Federal Reserve, Fixed Income, Liquidity Management, Regulatory, Technology

blockchain, Brainard, Federal Reserve, Fixed Income, Liquidity, Powell, topstory

A major speech and congressional testimony were released by the Federal Reserve on two important topics for Securities Finance Monitor readers: fixed income liquidity and blockchain for clearing and settlement.…

Dealers speak their minds on US bond and repo market liquidity (Premium)

April 11, 2016

Anna Reitman

Fixed Income, Repo, US

Federal Reserve, GCF Repo, HQLA, Liquidity, Repo, topstory, US Treasuries, Volcker Rule

As the repo market moves from what it was to what it will become, the current state of flux is creating fear and loathing, with just the slightest hint of…

In blockchain for repo initiative, DTCC goes head-to-head against Fedwire securities settlement services (Premium)

April 4, 2016

Richard Stinchfield

Blockchain, Custodians, Federal Reserve, Fixed Income, Market infrastructure, Operations, Repo, Settlements

bilateral repo, blockchain, DTCC, fedwire, FICC, Fixed Income, settlement, topstory

DTCC and Digital Asset Holdings have announced their intention to pilot a blockchain project for moving US government repo into into the same-day settlement realm. The press release describes an…

Falling US Treasury liquidity: what do securities lending rates show? (Premium)

February 3, 2016

Richard Stinchfield

Basel III, Federal Reserve, Fixed Income, Primary Dealers, Regulatory, Repo, Securities Lending, Shadow Banking

bilateral repo, Fixed Income, Quantitative Easing, securities finance, topstory

This month, the US Treasury solicited input from market participants on what needs to be done to fix the growing imbalance in price spreads between older and newer treasury issues.…

Regulators, please adjust the rules to preference the underlying markets, not the derivatives markets

January 27, 2016

Bank of England, Basel III, Derivatives, Fixed Income, Liquidity Management, Regulatory, Repo, Securities Lending

derivatives, Liquidity, securities finance, topstory, volatility

There is a fundamental liquidity problem in financial markets with a conceptually easy fix. The problem is that regulators have accidentally preferenced the use of derivatives over physical financing transactions…

Negative Spreads on Interest Rate Swaps: Could Repo be the Cause?

November 25, 2015

Cleared Interest Rate Swaps, Corporate Bonds, Derivatives, Fixed Income, Repo

Clarus Financial Technology, General Collateral Repo, interest rate swaps, LIBOR, Tod Skarecky, topstory

There has been a lot of press about negative swap rates — where the fixed side of an interest rate swap (IRS) is lower than the equivalent maturity US Treasury.…

More on market liquidity: is there another side to the Fed’s argument?

October 14, 2015

Basel III, Federal Reserve, Fixed Income, Regulatory, Repo

HFT, HQLA, IMF, Libersty Street Economics blog, mutual funds, topstory

The New York Fed has been on a full court press on the topic of liquidity. Nearly a dozen posts in Liberty Street Economics blog and speeches on the topic…

NY Fed President Dudley on Market Liquidity: It hasn’t really gone away

October 6, 2015

Basel III, Dodd-Frank, Federal Reserve, Fixed Income, Repo

corporate bond liquidity, High Frequency Trading, RWA, SLR, topstory, TRACE, US Treasury Liquidity

The debate over market liquidity is pitting the Fed against the buy side, with the sell side dealers getting caught in the middle. The Fed argues things are not so…

The FSB takes on fund leverage and liquidity

September 29, 2015

Financial Stability Board, Fixed Income, Investments, Liquidity Management, Risk Management, SEC, Securities Lending, Shadow Banking

Financial Stability Board, FSB, fund management, Leverage, Liquidity, Securities Lending, Shadow Banking, topstory

The Financial Stability Board (FSB) issued a press release outlining what they discussed at their Sept. 25th meeting in London. Leverage and liquidity is still on their mind. Securities lending…

Why has liquidity decreased in the markets? Daniel Tarullo says he isn’t sure.

June 30, 2015

Federal Reserve, Fixed Income, Investments, Liquidity Management, Regulatory, Repo

Council on Foreign Relations, Federal Reserve, Flash Crash, Liquidity, Tarullo, topstory

An interview last Thursday with Federal Reserve Board Governor Daniel Tarullo, discussing possible reasons for the October 15, 2014 Flash Crash in US Treasuries, shows regulatory uncertainty for why, at…

Reporters Alloway, Burne and McCormick take to Twitter about repo.

We noticed a discussion on Twitter between the Tracy Alloway (@tracyalloway) and Katy Burne (@ KatyBurne) about articles they have written on new players in the repo market. They also…

Do US Treasuries need dealers or is there enough liquidity already?

May 11, 2015

Fixed Income, Investments, Liquidity Management, Primary Dealers

BrokerTec, eSpeed, Fixed Income, ICAP, topstory, US Treasuries