(July 5 – 15:20 ET) – The Investment Dealers Association has released a report detailing trends in secondary debt trading.
The report focuses on 1999’s results, noting that volume was hampered by rising rates and the fear of Y2K disruptions toward the end of the year. Offshore trading also evaporated, with buying falling to a third of what it was in 1998.
Trading in Canada bonds continues to disappear, as budget surpluses knock off the supply. T-bill trading also slipped for the fourth straight year. The IDA says money market investors are increasingly using commercial paper and bankers acceptances, with BA trading now matching T-bill trading for the first time ever. Securitizations continue to make up a big chunk of the commerial paper market, now about 50%. Provincial and corporate bonds are holding up, although they were also hit by the fourth quarter slump, volume was up for 1999
-IE Staff