Concessions in primary rates markets are creating investment opportunities

The European Union’s €750 billion rescue package is having a massive impact on rates markets, with peripheral European country debt looking more attractive. Concessions in the primary rates markets, as a result of the debt issuance that governments are using to support their economies in the face of COVID-19, are also creating investment opportunities.

Liquidity is very challenged in the secondary market, but that requires investors to be smarter about how they interact with it, says Andrew Mulliner, head of global aggregate strategies at Janus Henderson. Buy-side trading desks and sell-side dealers have proven that investments in electronic trading have paid off, while investment firms with strong trading desks are reaping the rewards through enhanced access to the market.

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