.jpg){kind=avatar}
A key measure of corporate bond trading costs is down 12% more than a year after the US adopted one-day settlement, according to Barclays Research. Margin requirements have dropped 29%, which is capital that can now be put back to work, and there are signs that those savings have boosted credit market liquidity.
“Think of it as an efficiency boost to the system — or, put differently, as if your insurance premium just went down,” Zornitsa Todorova, head of thematic fixed income research at Barclays, said in an interview. “That capital can either be used to trade more actively or deployed elsewhere.”
unknownx500
More posts by Sarah Wolter
Recent posts from News by FinTech Collective