Lifting the Veil From the Bond Market

Systems promoted by regulators to improve transparency—such as soon-to-be-implemented FINRA announcements of corporate debt pricing—also wipe out traders' profits.

This thing called transparency is spreading in the corporate-bond market, and it’s hurting traders’ bottom lines.

Credit traders are increasingly being forced to publish the prices at which they bought and sold securities. They’re reaping smaller profits as a result, so it’s no wonder they’re negative on new proposals requiring them to report details on an even broader swath of debt trades.

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