Liquidnet, the global institutional trading network, announced today that it has added emerging market bonds to its institutional Fixed Income trading platform.
This latest addition comes amid growing institutional investor appetite for emerging markets bonds as they seek to diversify their portfolios and access growth opportunities in fixed income markets outside of North America and Europe.
Liquidnet’s Member firms can now trade bonds issued by corporations domiciled in emerging markets, as well as emerging markets government bonds in both hard and local currency. Six local markets have been included in the initial launch Mexico, Turkey, South Africa, Czech Republic, Hungary and Poland, with additional markets to be added in the coming year.
“The challenges facing asset managers in the emerging markets bonds space are often very similar to the obstacles in the corporate bond market. So it was an easy decision to extend the network of asset managers, technology, innovation, and streamlined workflow we’ve created in the corporate bond space to emerging markets,” said Constantinos Antoniades, Global Head of Fixed Income at Liquidnet. “Our deep pool of natural liquidity, and the information protection and transaction cost savings it provides, enables traders to refocus their attention to where it matters—alpha generation.”
To date, Liquidnet has secured more than 90 asset managers who trade emerging market bonds to take part in the launch of the new asset class. To support the growth in Member firms Liquidnet expanded its global Fixed Income teams with two strategic hires last quarter. Daniel Reddington joins Liquidnet from JP Morgan with more than 25 years of experience in emerging markets fixed income sales and trading. He joins the New York office, reporting to US Head of Fixed Income Sales, Chris Dennis. Daniel Swaby has over eight years of Emerging Markets experience, formerly at Natwest Markets and MarketAxess. Swaby joins the London team, reporting to EMEA Head of Fixed Income Sales, Jonathan Gray.
Launched in September 2015, Liquidnet’s Fixed Income platform has become one of the largest pools of buy-side liquidity in the world, with average daily liquidity surpassing $20B over the past two quarters. The platform includes over 1,000 traders from 380+ firms* representing the majority of the top 50 fixed income global asset managers**.
*As of 1 November 2018
**As measured by assets under management