Banks Embrace Technology-Enabled Portfolio Trading

The video discusses the rise of portfolio trading, a method allowing investors to trade slices of various bonds, facilitated by credit ETFs. This trend has grown rapidly, reaching $88 billion, and is driven by the need for risk management and liquidity. Credit ETFs play a crucial role by enabling price discovery and reducing banks' risk. Despite automation, human traders remain essential for client interaction and risk assessment.

What is portfolio trading and how has it changed in recent years?

Explain the role of credit ETFs in the rise of portfolio trading.

How do banks manage risk in the context of portfolio trading?

Discuss the significance of liquidity and price discovery in the corporate bond market.

What impact does portfolio trading have on how banks staff their corporate credit desks?