Portfolio Trading offers a highly efficient channel for sourcing liquidity from ETF market-makers, which are frequently pricing credit bonds in real-time to facilitate fixed-income ETF creation and redemption. Adopters of the protocol, BBVA AM’s clients were very satisfied with their ability to reduce their credit risk and costs, by switching efficiently out of their fixed-income ETFs, replacing them with a portfolio of credit bonds that more closely matched their requirements.
“From a PM perspective, portfolio-trading of basket bonds is all about efficiency. It makes launching a new Fund or a new strategy a much more simple task. It provides us with liquidity, transparency and better execution for a large list of bonds. For us it has become an essential tool for PMs.”
Pablo Fernandez
Multi-asset Dealer
BBVA Asset Management SA SGIIC
As early technology adopters, DWS has integrated data analysis and automation into its workflow, to better identify the best route to market for any individual trade on a consistent and systematic basis.
Having achieved high levels of automation for rates and FX, they turned their attention to credit to:
A key priority is ongoing investment in – and refinement of – trade automation. Vontobel took advantage of Tradeweb’s expertise in multi-asset automation and extended the scope of their trade execution from cash bonds to ETFs. This had a number of positive outcomes
Since introducing electronic portfolio trading on its Credit platform in January 2019, Tradeweb has facilitated over $300 billion in portfolio trades globally. But when is it appropriate to turn to this protocol, and what are the benefits? To find out, let’s look at one early adopter, Generali Investments, a leading asset manager with about €498 billion in assets, and part of the Generali Group.
“At Generali, innovation is important to us. We recognised electronic portfolio trading as cutting-edge tool that helps reduce operational risk, improve efficiency and significantly decrease trading execution time, while at all times maintaining the highest quality for our clients.”
Vincenzo Barbagallo
Head of Trading Desk
Generali Insurance Asset Management SpA SGR
The bank was keen to further improve the quality and breadth of its execution capabilities, envisaging a comprehensive and highly scalable service that could meet the needs of its expanding client base and keep ahead of the competition.
Banca Akros wanted to create:
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