Liquidnet injects much needed liquidity into bond market

Liquid alternativesTrading network Liquidnet has launched its fixed income “dark pool” that will enable asset managers to trade corporate bonds peer-to-peer.

The company has signed up 120 asset managers, which it says represent a critical mass of liquidity and a sizeable portion of assets under management for high yield and investment grade bonds in the US.

The platform will enable trading for US and European corporate bonds, both high yield and investment grade, emerging market corporate bonds, and European convertible bonds.

The scheme has been designed to provide a solution for corporate bond traders, providing them a protected venue in which to trade natural liquidity in a safe and efficient manner, says the firm.

“The fixed income market has been woefully underserved by technology and, as concerns about a liquidity crunch continue to rise, it needs a transformation,” says Seth Merrin, founder and chief executive officer of Liquidnet.

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