Hims Debuts $199 Weight-Loss Shots at 85% Discount to WegovySystematic money managers, making fast decisions about corporate bonds to buy and sell using complicated algorithms, have seen their assets more than double over the last year by one measure, according to Barclays Plc strategists. By another metric, there could be $90 billion to $140 billion of funds in these strategies in US high-grade and junk bond markets.
“This breadth-first approach is therefore likely to create demand for bonds in less liquid areas of the market and provide additional price discovery,” they wrote.Automated credit trading has been growing for years, particularly among brokers and dealers, but was focused on helping traders buy and sell securities more efficiently. What’s different now is that the robots are making more decisions about what securities to buy and sell.
They also outlined risks associated with increased systematic trading, especially the potential for trend-followers creating “herding behavior” around certain names and amplifying volatility. Similarly, factor models that try to build on momentum, search for underpriced bonds or take advantage of bid-ask spreads can cause sharp movements in prices, as can tactical strategies that trade individual bonds.
On today's episode of The Morning Brief, Yahoo Finance Hosts Seana Smith and Brad Smith break down some of the market's biggest stories and give an overview of the trading week ahead. The stock market opened mixed on Monday, with the Dow Jones Industrial Average opening below its recent record high of 40,000. Morgan Stanley's Michael Wilson, previously bearish on S&P 500 growth, is now bullish on the index's potential, revising his target from 4,500 to 5,400.
In the face of lingering inflation, consumers are grappling with the pinch on their wallets. Edelman Financial Engines Director of Financial Planning Kelli Smith joins Wealth! to discuss strategies for combating inflation. Smith emphasizes the importance of being proactive, stating that individuals need "to get out in front of it.
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