Bond Conundrum Leads Fund Managers to Plot Fixes: Credit Markets
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The world’s biggest money managers are mapping out proposals intended to grease trading in debt markets that regulators warn are at risk of seizing up in the event of a sudden rush by investors to pull cash.
Pacific Investment Management Co., BlackRock Inc. and Vanguard Group Inc. are among firms that have met in recent months to discuss potential fixes that they want to present to the U.S. Securities and Exchange Commission, according to Paul Jakubowski, Vanguard’s head of global credit. The talks are in early stages and will include whether the industry should focus trading on one or two electronic venues where investors can buy and sell with each other without having to rely solely on a broker, he said.