Chalif credits much of the change to technology-enabled portfolio trading, which is bringing the same blazing speeds to the bond market that stock traders take for granted. Wall Street’s bond desks have executed at least $88 billion such trades this year, according to an analysis by Morgan Stanley. “Clients are now embracing portfolio trading, e-trading and other technologies, and they’re starting to get excited about what they can accomplish." The rise of portfolio trading “has been a natural progression for bond markets," said Jim DeMare, co-head of fixed-income trading at Bank of America Corp. Executives across Wall Street are bracing for fixed-income trading spreads to begin the same slow, steady contraction that’s already taken place in equities trading.

Source: Mint November 18, 2019 12:22 UTC