Bond E-Trading, ETFs and Real-Time Analytics Fuel Growth of Systematic Credit Trading

Times are changing in fixed-income markets as hedge funds look to apply quantitative trading strategies to the more complex universe of corporate bonds.

Over the past three years, firms have increasingly utilized systematic credit trading strategies to identify mispricings in fixed income securities and capture other opportunities in the market. These strategies are now viable due to changes in the structure of the bond market fueled by the growth of electronic trading volumes, the rise of exchange-traded funds (ETFs), and the acceleration of technology such as bond analytics deployed in the cloud.

Read this white paper to learn more about current trends in systemic credit trading. Topics covered include:

• How hedge funds are applying quantitative trading methods, traditionally used in equity markets, to the complex area of corporate bonds
• Reasons why portfolio trading has become more prevalent
• Why the growth of bond ETFs has significantly impacted the bond market
• How the combination of real-time analytics and electronic trading platforms has enabled the adoption of systematic credit trading strategies
• Trends shaping the transformation of fixed-income markets, making them more accessible to a range of market participants