Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013
Kevin McPartland, Greenwich Associates

22425

US institutional investors looking beyond primary dealers for Treasury trades

RELATED TOPICS​

The top 10 dealers of US Treasuries captured a collective 86 per cent of client trading volumes last year, but there are signs that new competitors are expanding their toehold in a market estimated to produce USD750 million in annual revenues.

Nearly one-in-five of the almost 1,000 institutional Treasury investors participating in the Greenwich Associates 2016 North American Fixed-Income Study expect to be trading Treasuries with non-bank liquidity providers within the next year.
 
A new report from Greenwich Associates, New Landscape in US Treasury Trading Benefits the Buy Side, examines several trends working to expand opportunities for non-bank liquidity providers and other competitors beyond the market’s major primary dealers.
 
According to the report, US investors trading US Treasuries currently trade nearly half of their notional volume electronically, up nearly 17 per cent from 2015, with over 80 per cent now accessing e-trading platforms for at least some of their trades.
 
Some 70 per cent of investors told Greenwich Associates they trade government bonds with dealers that do not provide repo/financing, a major offering of bulge-bracket banks to facilitate client trading, given their unmatched access to balance sheet (albeit less than in the past).
 
Two-thirds of investors meanwhile, say they’d continue to trade with their dealer counterparties even if they were no longer primary dealers.
 
“The world’s biggest government bond dealers continue to handle the vast majority of Treasury trading volume, including the largest and most important trades in the market,” says Kevin McPartland (pictured), head of research for market structure and technology at Greenwich Associates, and author of the report. “However, our research shows that investors are slowly starting to decouple their execution needs from the broader array of services that large money centre banks continue to provide.”

Latest News

Global index revenues increased 9.3 per cent in 2023, totalling a record USD5.8 billion, according..
Octopus Investments (Octopus) has announced it has launched a Natural Capital Strategy...
Research firm focused on Alternative UCITS funds, Kepler Absolute Hedge, has published its Market Intelligence..

Related Articles

Trends
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100 million deals announced this month alone...
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100..
Different flavours
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led, multi-boutique global asset manager with over USD20 billion under management, recently undertook a survey with 204 UK investment professionals, seeking insights into their perceptions and attitudes towards boutique asset managers...
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led,..
UK map
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be worth billions of pounds in the coming years...
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be..
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a possible buyout of EY’s Italian consulting branch...
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by