A Look at Innovation and Evolution in the Credit Markets

The credit marketplace is evolving as e-trading continues to grow, and the market transformation takes hold. Chris Bruner, Head of U.S. Credit Product for Tradeweb recently spoke with Larry Tabb, CEO and founder of TABB Group at TabbFORUM’s annual fixed income conference, the Big Fix. During the discussion, Bruner highlights the liquidity challenge in the markets, and the continued evolution in credit with the introduction of electronic innovation in the odd lot space for trades of less than $2 million. 

“We’ve been working to innovate on the post-trade mechanism in that space. For example, we use Treasury liquidity from the Tradeweb institutional platform to actually route hedges for investment grade trades. While that space was well served to get the credit risk out into the marketplace, it wasn’t automated, rather a manual process to hedge those trades. We’ve actually automated that process in the under $2 million space,” Bruner notes. 

He also comments about delivering the efficiencies of an electronic marketplace without information leakage to clients, providing access to high-quality pre-trade data and the importance of automating of the pre- and post-trade workflow to enhance the trading process.

Bruner concludes that while liquidity in certain parts of the credit markets has become constrained, there is still opportunity to trade depending on the types of trades investors are looking to execute. 

Click here to watch the full video.