Managers Fight Liquidity, Cost Challenges on Bond Platforms (FundFire)

IMP's Jon Gold was quoted in a FundFire article about how asset mangers are using new trading technology to make it easier and cheaper to buy and sell liquidity-challenged corporate bonds. Read an excerpt from the article:

Participating on this type of platform could help managers avoid requirements to report publicly within fifteen minutes details of the trade they have completed. Institutional managers will be keen to pursue this option, as competitors will be able to identify a large manager trying to unwind a large position that may take days or weeks to exit, which would in turn unfavorably shift the price against that manager, says Jon Gold, a managing director with IMP Consulting, who is working with U.S. managers to prepare for MiFID II.

"If a large asset manager that has a concentrated position in a single security is trading that security and it comes through within fifteen minutes, you may be able to figure out who is trading that position and which direction they’re going," he says. He agrees this will spur greater electronic corporate bond trading.

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