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US fixed income markets * * The opacity crisis * * ,[object Object],[object Object],[object Object],[object Object]
The New York Times... ,[object Object],[object Object],[object Object],[object Object]
Run on East Side Bank, NY 2/16/12
What's the market? ,[object Object],[object Object],[object Object],[object Object]
A bond = ,[object Object],[object Object],[object Object]
US issuers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Bonds are underwritten... ,[object Object],[object Object],[object Object]
<<  The underwriter distributes  the deal  >> ,[object Object],[object Object],[object Object]
<<  Investors  >> ,[object Object],[object Object]
<<  Credit ratings agencies  >>
<<  How is the bond priced when issued?  >> Yield on Treasuries < B1 > < B > < BB- > IB 9.04%. 3.80 %
<<  What happens when bonds are issued?  >>
<<  When bonds trade over the counter   >>
<<  When the bonds trade-  ECN or ATS  >>
<<  When bonds   e xchange trade  >>
<<  What is FIX  >> ,[object Object],[object Object],[object Object],[object Object]
<<  Message flow  >> ,[object Object]
<<  Why use FIX  >> ,[object Object],[object Object],[object Object],[object Object],[object Object]
<<  FIX trade many products  >> ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
<<  Buyside   FIX usage  >> Fixed income Equity Derivatives FX Source:  fixprotocol.org/survey  
<<  Sellside   fixed income usage  >> Governments Agencies Corporates Source:  fixprotocol.org/survey   Converts MBS Pre-Trade Trade Post-Trade Support w/in 24 months
<<  What kind of financial assets  do households own?  >> Source: Survey of Consumer Finance – Federal Reserve
Bringing light to a dark market Policy recommendations for  fixed income
<<  Price reporting  >> ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
<<  Naming  >> ,[object Object],[object Object],[object Object],[object Object]
<<  Expand “equivalent disclosure” to all rated asset classes  >>  ,[object Object],[object Object],[object Object]
<<  Require public companies to disclose  outstanding   securities  >>  ,[object Object],[object Object],[object Object]
<<  Create a facility for retail investors  to purchase Treasury securities  >> ,[object Object],[object Object],[object Object]
<<  More oversight and transparency  for all trading venues  >>   ,[object Object],[object Object],[object Object]
<<  Trade and clear cash and derivative products through multilateral platforms  >> ,[object Object],[object Object],[object Object]
<<  Repeal the Tower Amendment  >> ,[object Object],[object Object],[object Object]

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Creating transparency in the fixed income markets

  • 1.
  • 2.
  • 3. Run on East Side Bank, NY 2/16/12
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. << Credit ratings agencies >>
  • 11. << How is the bond priced when issued? >> Yield on Treasuries < B1 > < B > < BB- > IB 9.04%. 3.80 %
  • 12. << What happens when bonds are issued? >>
  • 13. << When bonds trade over the counter >>
  • 14. << When the bonds trade- ECN or ATS >>
  • 15. << When bonds e xchange trade >>
  • 16.
  • 17.
  • 18.
  • 19.
  • 20. << Buyside FIX usage >> Fixed income Equity Derivatives FX Source: fixprotocol.org/survey  
  • 21. << Sellside fixed income usage >> Governments Agencies Corporates Source: fixprotocol.org/survey   Converts MBS Pre-Trade Trade Post-Trade Support w/in 24 months
  • 22. << What kind of financial assets do households own? >> Source: Survey of Consumer Finance – Federal Reserve
  • 23. Bringing light to a dark market Policy recommendations for fixed income
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.