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Greenwich Associates: Buy-Side Unsatisfied With Access To Credit Markets, But OTC Derivatives Improving 

May 4, 2017

Compared to pre-crisis days, there have been undeniable advances in  OTC derivatives (over-the-counter) management. Markets that were once controlled by a handful of firms who kept a tight grip on market information as rich bid-ask spreads and transaction costs were codified in a relationship-based trading environment have changed. There have been numerous market innovations, particularly in interest rate markets, notes Greenwich Associates in a report out Tuesday. But challenges also remain in credit default swaps (CDS), total return swaps (TRS), corporate bond market and other venues that trade debt-related products.

After interviewing just under 1,000 institutional investors active in fixed income trading, Kevin McPartland, Head of Research for Market Structure Technology at Greenwich Associates, observed decided trends, but one germane point to the underlying market attitude shines through.

“The buy-side is unsatisfied with their access to credit markets,” the report, titled “Credit Investing Beyond the Bond Market,” observed, pointing to the opinion of 90% of the U.S.-based credit investors surveyed.

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