Woodbine Associates’ new report, “Credit Trading Dealer Liquidity: Asset Manager Views on Dealer Services in the U.S. Credit Markets” identifies execution-related preferences and criteria important to asset managers in the corporate bond markets.  The report provides market intelligence essential to dealers striving to add value, differentiate and align market-making and execution services with customer needs.

This report details asset manager considerations for sourcing block-sized and market-sized liquidity directly from sell-side firms.  It analyses execution and relationship preferences for three market segments: high-volume investment grade, low-volume investment grade, and high yield asset managers.

Key Findings of Woodbine Associates’ Report Include: 

  • Meaningful differences exist between high-volume and low-volume investment grade asset managers.
  • High-volume firms generally treat dealer liquidity as a commodity – yet – opportunities exist for dealers able to satisfy ancillary wants and needs.
  • Substantial opportunity exists with low-volume asset managers in both block and market-sized trading due to their responsiveness to dealer performance and relationship efforts.
  • Expanding relationships with high yield asset managers is often driven by firm specific needs and preferences. Notwithstanding, once established, incumbent relationships are relied upon for most liquidity needs.
  • Primary market allocations remain highly influential in secondary market trading and relationship decisions for many managers. Dealers with weak underwriting businesses are at a distinct disadvantage with these managers.

This report is based on a rigorously crafted, invitation-only survey of 31 head or senior traders and portfolio managers at leading asset management firms.

This 41-page report has 29 figures and tables.

The report is available free of charge to Woodbine Associates Market Intelligence Service members.  It may also be purchased individually.

For more information please contact:

Sean Owens
Director of Fixed Income
Phone: 203-274-8970 x 204
Email: sowens@woodbineassociates.com

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