Bonds
Apollo Says Corporate-Bond Trading Costs Surged in Market Tumult
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Bond dealers started demanding higher compensation for the risk of trading investment-grade corporate debt after President Donald Trump’s trade war sent volatility racing through markets, according to an analysis by Apollo Global Management Inc.
Bid-ask spreads — or the difference between the price at which dealers are willing to buy and sell the same bond — roughly doubled to 0.2 percentage points for less liquid securities after Trump released his punitive tariffs on April 2, Apollo’s chief economist, Torsten Slok, wrote in a note Tuesday, citing analysis from his colleague Shobhit Gupta.