Making Sense

A new era of credit portfolio trading?

6 snips
May 9, 2025
Dive into the dynamic world of credit portfolio trading, where recent market volatility is reshaping strategies. Discover how J.P. Morgan's innovative risk management techniques are setting them apart. The discussion highlights the critical role of technology in enhancing liquidity and closing data gaps for smoother trading experiences. Plus, get excited about emerging tools like Vida B2one, which promise to revolutionize portfolio management and open up new opportunities for investors.
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INSIGHT

Credit Portfolio Trading's Rising Role

  • Credit portfolio trading has become crucial during recent market volatility and sell-offs.
  • It now represents 12-15% of overall traded volume in the US investment-grade space, showing strong client reliance.
INSIGHT

Market Structure Transformation

  • Credit portfolio trading shifted from single bond protocols to buying multiple bonds or ETFs.
  • Dealers now manage liquidity aggregation, factor risk, and use systematic pricing to excel.
INSIGHT

Technology-Driven Trading Shift

  • Portfolio trading evolved into a one-stop solution offering strategic and tactical trades with competitive fees.
  • Technology investments are critical to meet evolving client needs and support multiple asset classes.
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