January 2009
Debt trading poll 2008: All change in secondary markets
The liquidity crisis has contributed to a dramatic change in the trading of fixed-income securities. A year ago the curtailment of the liquidity to investors could be written off as a temporary state of affairs that would be rectified as soon as market conditions got back to normal.
Are agency brokers the new powers in debt trading?
However, now the illiquidity in cash trading appears long term, the dominance of levered investors such as hedge funds, and prop and structured credit desks is a distant memory.
Investment banks are not only short of funding avenues but also of capital. With capital in short supply – and often provided by new stakeholders such as governments – the commitment of numerous dealers has come under scrutiny. Furthermore, measures of risk such as VAR have exacerbated the problem. Volatility in the underlying market conditions has led to all banks cutting their risk positions at the same time.
Some banks remain in the secondary trading game but the withdrawal of several players has had a significant impact on overall liquidity. The trading houses that come out well in the latest...
More information on secondary debt trading
The rest of this article is available to subscribers only
Please Subscribe or take a Free Trial below.
Already a subscriber? Log in here.
Subscribe online today
- Your print copy delivered every month
- Over a decade of archived content
- Daily news and updates
- Personalised email news feeds
- Unlimited online access
- Access to all our survey and award results
Subscribe
Free 48 hour access
- Online access to Euromoney.com
- In-depth analysis and comment of the international capital markets
- The best of our editorial comment by email
- Complimentary digital magazine sample
Start Trial
Questions about your subscription status?
Email us or call: +44 (0) 20 7779 8888
