Mon, Oct 24, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Low rates and new regulations create challenges for U.S. fixed income markets

Wednesday, July 23, 2014

Komfie Manalo, Opalesque Asia:

Global market intelligence provider and advisory services Greenwich Associates said that fixed- income dealers who thought market conditions could not get any worse this year have been proven wrong.

According to Greenwich Associates, in the current market environment, dealers retaining scale and smaller, potentially more nimble competitors managed the best in terms of market share or gaining new customers.

In its 2014 Greenwich Share Leaders in Overall U.S. Fixed-Income research, it said that the two main factors that contributed to the tough year are: Low rates and new regulations. Low rates and a lack of volatility kept fixed-income trading volumes distressingly low and left a number of dealers and investors on the wrong side of the market as rates declined.

"The bottom line for fixed-income dealers: revenues are down and costs are up," says Greenwich Associates consultant Frank Feenstra.

New, tougher capital reserves requirements made the balance sheet the biggest issue and dealers are more constrained than ever as to how much inventory they can carry and how much liquidity they can provide. New regulations have also sharply increased compliance costs as banks were forced to hire hundreds of compliance officers and upgrade IT systems. ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa