Financial Digest

Wall Street Dealers Are Increasingly Middlemen, Coalition Says

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 37 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 50%

Finance Finance Headlines News

Finance Finance Latest News,Finance Finance Headlines

Wall Street dealers are holding significantly fewer bonds on their balance sheets while trading more of the securities, as technological advances and regulatory changes transform their role in the U.S. government and corporate debt markets, according to Coalition Greenwich.

Dealer holdings of corporate bonds slid 77% from 2017 through the end of 2022 to $3.6 billion, while their average daily trading volume grew 29% to $37.7 billion, the financial services consulting firm said in a report Tuesday. During the same period, dealer daily transaction volume of US Treasuries jumped 22%, while their net holdings of government debt stayed roughly flat.

“Dealers are using less balance sheet to trade bonds with customers because they’d prefer not to and because they don’t have to,” wrote Kevin McPartland, Coalition Greenwich’s head of market structure research. “Bond dealers are increasingly acting as bond brokers by facilitating the movement of those bonds with little or no holding period in between.”

The Treasury market has grown to about $25.5 trillion from $13.9 trillion at the end of 2016. The corporate bond market stood at $10.6 trillion at the end of the second quarter, up from about $7.96 trillion, according to data from the Securities Industry and Financial Markets Association, a trade association representing brokerages and investment firms.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 83. in FİNANCE

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks mixed as Wall Street braces for Fed meeting: Stock market news todayWall Street fixed its focus on an upcoming Federal Reserve meeting where the central bank will issue its next interest rate decision: stock market news today.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market today: Wall Street drifts and oil prices climb ahead of Fed meetingNEW YORK (AP) — Wall Street is drifting in the early going, while oil prices keep climbing and raising pressure on inflation. The S&P 500 was little changed in the first few minutes of trading Monday, coming off its second straight losing week.
Source: SooToday - 🏆 8. / 85 Read more »

Stock market today: Wall Street drifts ahead of Fed's next meeting on interest ratesNEW YORK (AP) — U.S. stocks edged higher as Wall Street makes few big moves in advance of the Federal Reserve’s next meeting on interest rates. The S&P 500 closed virtually unchanged Monday.
Source: SooToday - 🏆 8. / 85 Read more »

Instacart set for Wall Street debut days after Arm's fiery entry(Reuters) - Shares of grocery delivery app Instacart were set to start trading on the Nasdaq on Tuesday, the second high-profile debut in days after ...
Source: SaltWire Network - 🏆 45. / 63 Read more »