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Monthly Archives: December 2006

Best of ‘06: Retail fixed income

It’s been a very good year for retail fixed income. Although the yield curve favors the short end and cash instruments, various structural developments  have occurred which bodes exceptionally well for the next ten years in retail fixed income. Here is Shopyield’s “Best of ‘06″:

The NYSE Bonds platform receives regulatory approval…the emergence of exchange traded […]

Ratings contribute to the price formation function…

Thomas Schiller, the Executive Managing Director of Standard & Poor’s in Asia Pacific, writes about the role of credit rating agencies in the New Delhi “Business Standard”.  
…”Independent credit ratings — and the analysis that ratings agencies perform — are an important ingredient in bond market transparency. They play a key role in reducing the information asymmetry […]

Transactable tools…

Congratulations to Sam Johnson and the team at Transactools which was recently purchased by the NYSE.
Sam has always had one of the most expansive views of financial markets connected via messaging protocols and tools…its fascinating that the NYSE has purchased the group…I think it says a lot about how they view the future development of […]

Transformative power…

 This is Taharqa Ramses of Sing Sing prison. Taharqa graduated with a degree in Behavioral Science from a program run by Mercy College at the prison. The education that Taharqa and other inmates in the program receive help them experience a new approach to life. The name of the program is Hudson Link.
In this season […]

Extra Ajaxy…

Thanks to a post on Techcrunch we learn about a new upgrade at Google Finance…more Ajax…hummm…I guess if you follow equities the additional functionality would be cool…I’m looking forward to the time when fixed income has the same level of exposure in the retail portal world…maybe in ‘07?
Top five retail financial portals for November ‘06 >>>

Portal

Nov […]

Concentrated activity…

Corporate bond activity in the over-the-counter market is very concentrated. The top fifty firms account for approximiately 75% of the trades. It will be interesting to see how the mix changes as exchange trading takes hold…here a graph showing corporate debt trades reported to TRACE by concentration of BDs… 

The SEC goes beta…

As a part of the XBRL Initiative the SEC has a “Preview Release of the SEC’s Interactive Financial Report Viewer!”.
It’s a little early to tell what specific uses can be made of the Financial Report Viewer but its clear that if you are interested in the quantitative information contained in a company’s public filings you will […]

Humble beginnings…

The exchange trading of bonds in the United States is in its earliest infancy.
Just a few statistics to serve as benchmarks to compare future growth against:
# of firms connecting to the NYSE Hybrid system for equity trading >> 62
# of firms connecting to the NYSE Bonds system for bond trading >>  4

Best execution…the heart of the matter…

A funny thing happened on the way to completing the trade…this could turn a lot of the retail fixed income market upside down…
The SEC and the NASD have clarified the requirements for best execution…of relevance to the bond market for retail investors: 

The Best Execution Rule applies to all trading venues.
Although the BMA argued that the […]