Buy side confronts dealers over unreliable bond prices

Investors are quantifying the quality of indicative prices and banding together to tackle the issue

Paying too much

When corporate bond prices flash across their screens, buy-side traders know to be sceptical. The price they receive when executing a trade can be far from what was advertised.

Some on the buy side have had enough of this, and they are trying to do something about it.

The trading desk at Pictet Asset Management has been comparing indicative prices sent by dealers to traded prices and confronting them about the discrepancies.

“It was pretty uncomfortable, because it laid bare what they were

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