FYI: Bond traders at some of the world’s largest banks have more than $50 billion riding on the success of the exchange-traded fund market, according to a new report from BlackRock Inc.
So-called portfolio trades, in which multiple bonds from different borrowers change hands during one transaction, are “a direct result of the growth of fixed income ETFs and their associated ecosystem,” BlackRock executives led by Dan Veiner, the firm’s global head of fixed income trading, wrote in the report. More than $1 trillion is invested in bond ETFs, with trading leaping 41% in 2018 from a year earlier, according to this research.
Regards,
Ted
https://www.fa-mag.com/news/a--50-billion-bond-trade-embraced-by-goldman-hinges-on-etf-gains-52313.html?print
