Buyside Demands Corporate Bond Upgrade
Rob Daly of Traders Magazine reports on the search for better price discovery among corporate bond market participants, especially the buyside. The article discusses factors influencing the pricing of corporate bonds and cites a recent paper which analyzes the marketplace and discusses the need for change. Tradeweb is named as a firm that has launched an investment grade U.S. corporate bond trading platform in recent months which allows traders to send RFQs for round-lot orders to up to five dealers and also submit RFQs for odd-lots to all liquidity providers. In addition, it is noted that the platform which provides streaming prices for investment grade bonds delivers a 95% certainty that investors' trades will be filled from the streaming prices.