In liquid markets, Fed intervention means lower volumes as volatility fades. In illiquid markets (like corporate bonds), Fed intervention means stronger volumes as liquidity is injected into a system that welcomes it.
Show this thread
Fed tapping Tradeweb and MarketAxess as counterparties for its bond buying programs:pic.twitter.com/opzQL5Va76
-
-
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
-
It will impact MarketAxess more than Tradeweb given higher exposure to corporates. It's more a continuation of a trend we're already seeing re exchanges benefitting from central banks in some ways and hurting in other ways.
End of conversation
New conversation -
-
-
not really counter-parties but communities. TW and MarketAxess doesn't take risk/have a balance sheet but TW and MarketAxess will enable their customers access to Fed liquidity. This is actually a huge deal. It undermines one of the key benefits of being a primary dealer.
-
Thanks. TW’s headline was a bit confusing but agreed it enables “all-to-all” trading growth which is important.
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.