Anthony Caserta’s Post

Securities Finance Times issue 345 online now! https://lnkd.in/eRSeUD8N Anthony Caserta of FinOptSys, Chris Benish of State of Wisconsin Investment Board and Michael Newallo CFA CPA discuss the importance of peer-to-peer lending, its misconceptions and why firms should be looking at new routes to market. Carmella Haswell reports. Cyril Louchtchay de Fleurian, a consultant on repo markets and SFTs, examines a roadmap for growth and efficiency gains in European repo markets. Major moves at MUFG, State Street, Pirum and Northwestern Mutual.

Electronic trading has surged over the last four years in the corporate bond market, accelerated by the work-from-home disruption of the COVID era. This year, about 35%-40% of corporate bond trades have been executed electronically, according to analytics firm Coalition Greenwich (a division of CRISIL). That may not seem like a lot, considering that stocks have largely traded electronically since the 1970s. But compare that to early 2019: Back then, just 13% of high-yield and 25% of investment-grade bond trades were electronic. Axios, Kate Laughlin Marino #CoalitionGreenwichData #CorporateBonds https://lnkd.in/gZXPNEiB

Ares' Head of Credit Secondaries Dave Schwartz spoke with Bloomberg to address the growing use of the secondary market as a solution for private credit investors seeking liquidity and flexibility they otherwise wouldn’t be able to access. More in the full article on the market’s continued growth and the exciting opportunities ahead. #Secondaries

The post-pandemic rise of private credit in portfolios has left many wondering about the role of traditional #fixedincome in diversified portfolios. #Privatecredit may have unique risk/reward benefits, but according to Manny Damianakis, Head of Sales at Global X ETFs AU, it’s not a 'be-all-end-all' for #yield generation. There’s another – even preferable – defensive tool at investors’ disposal: #income #ETFs. Read Manny’s editorial in InvestorDaily to learn the nuances between income versus private credit, and why #financialadvisers should be paying attention to income ETFs for defensive strategies. https://bit.ly/3vtMeyi #Bond #dividend #coveredcall

Ever wondered how fixed income securities are created and then traded? Here is how... Fixed income securities, the backbone of finance, hold secrets that few dare to expose. Let's unveil the mysterious journey of these bonds from issuance to trading: 🏢 Bond Birth: It all starts when entities, such as governments, corporations, or municipalities, need capital. They issue bonds, but what's behind the scenes may surprise you. 📈 Primary Market Drama: New bonds enter the primary market with whispers of exclusivity. But are these offerings as transparent as they seem? 💼 Secondary Market Intrigue: Once issued, bonds venture into the secondary market, where they are bought and sold. But who really controls their fate? 📊 Brokerage Firm Confessions: Investors rely on brokerage firms for access. But do these intermediaries have their own hidden agendas? 💱 Trade Execution Revelations: Orders are matched, and bonds change hands. But what happens when the trading floor is shrouded in darkness? 💼 Clearing and Settlement Enigmas: Clearinghouses ensure transaction integrity. But is there more to their role than meets the eye? 📜 Portfolio Management Unmasked: Bonds become part of portfolios. But are investors truly aware of the risks they bear? 📊 Market Analysis Exposé: Analysts monitor markets closely. But are they always honest about their predictions? The world of fixed income securities is riddled with secrets. Let's dig deeper and expose the hidden truths. #MDMarketInsights #fixedincome #capitalmarkets #businessanalysis #bondtradeflow #financialsecrets #controversialfinance

I love CLOs more than most, and view CLO ETFs as a wonderful financial innovation that serve a great role for investors from cash replacement (AAA) to floating rate income (B-BBB and hopefully soon equity!). That said, this article comparing them to BDCs/private credit based solely on fees and perceived downside risk seems incomplete when the highest yielding CLO ETFs mentioned here, JBBB, yields 7.9% and the largest JAAA yields under 6.7%, while many top tier public BDCs yield over 10%. BDCs and CLO ETFs are both wonderful ways for retail investors to access institutional quality floating rate yield strategies. They can coexist in a portfolio and play distinct, necessary roles and each have their own pros and cons. Pitting the two against each other strikes me as a false dichotomy. Also, fwiw, if they were looking for a CLO ETF with a collateral and yield profile most similar to direct lending Panagram’s CLOZ is probably a better comp.

As an investor, working through the uncertainty of the current macro environment can be challenging. Join the experienced financial professionals at BNY Mellon, Walter Scott & Partners Limited, and VettaFi for a CE credit-eligible webcast where they will discuss the potential benefits of navigating the current and future economic environment through international equities in an ETF vehicle. This complimentary webcast is for financial professionals only and is closed to the public. BNY Mellon and VettaFi are unaffiliated entities. https://bit.ly/45G1eGe

Unlocking Credit Risk: How ETFs Transform Financial Markets #CDSmarket #creditdefaultswap #derivatives. #ETFs #exchangetradedfunds #financialinstruments #financialmarkets #fixedincome #intradayliquidity #liquidity #managingcreditrisk #OTCtrading #regulatoryhurdles #SECapproval #systemicrisk #transparency

Unlocking Credit Risk: How ETFs Transform Financial Markets #CDSmarket #creditdefaultswap #derivatives. #ETFs #exchangetradedfunds #financialinstruments #financialmarkets #fixedincome #intradayliquidity #liquidity #managingcreditrisk #OTCtrading #regulatoryhurdles #SECapproval #systemicrisk #transparency

Every month Aegon AM Strategic Bond managers, Colin Finlayson and Alexander Pelteshki, CFA, put together a video covering what they are seeing within Fixed Income markets and how they are structuring their portfolio in order to take advantage of these changes. The latest update for April 2024 is provided below and covers three key points: 1. US Rate Cuts are being pushed back by stronger data 2. Data in Europe and UK has been softer 3. Credit spreads have tightened meaningfully YTD https://lnkd.in/ecgJpmZE In these rapidly changing market conditions we believe that flexibility within a Strategic Bond Fund is key and we would be happy to discuss with you how we see believe our approach can help your portfolios.