Bond managers 'nervous' about banks' role in liquidity projects

Laura Dew

Fixed income managers have expressed concerns over a new initiative to boost shrinking liquidity in bond markets, fearing the inclusion of 15 banks will cause price swings in the market.

Investment Week reported last week the Neptune Collaboration has been launched as a not-for-profit iniatiative looking to increase trading of corporate bonds, boosting liquidity in the fixed income market. It was soft-launched in April and is already backed by 15 banks and 27 asset management firms including Aviva Investors and J.P. Morgan. Groups involved now send pre-trade indications to their clients across the Neptune pilot production network and receive pre-trade indications from multiple banks, simplifying the trading process. Gross: Bond liquidity problems "scares the hell...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Bonds

Arthur Lau of PineBridge Investments

Asia Fixed Income: on a firm foundation

US interest rates little impact

Arthur Lau
clock 20 July 2022 • 3 min read
Mark Holman, portfolio manager at TwentyFour Asset Management

TwentyFour's Holman: How to prep your bond portfolio for recession

The first half of 2022 was one of the most painful periods in living memory for financial markets.

Mark Holman
clock 19 July 2022 • 4 min read
UK equities saw the largest outflows out of any category, at more than £2bn.

Refinitiv: Equity funds see almost £7bn outflows in June

Passive bonds attract fresh capital

clock 18 July 2022 • 3 min read