Pricing imperfections

As financial markets continue to unravel and the industry seeks ways to combat systemic flaws, third-party valuations of illiquid assets has become vital. With toxicity abundant, effects have been severe and widespread. The need for any form of capital, and any degree of certainty, has forced banks to price their holdings, even when assets are no longer tradable because markets have frozen.

In order to reflect these conditions, institutions have posted huge quarterly write-downs on their assets

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Systematic tools gain favor in fixed income

Automation is enabling systematic strategies in fixed income that were previously reserved for equities trading. The tech gap between the two may be closing, but differences remain.

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