Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co. and is recommending short-term debt, maintained his biggest holdings in Treasuries and U.S. government-related securities in November.
Dealer revenue from negotiating interest-rate swap transactions is poised to plunge about 45 percent as new rules boost trading costs, pressures that may prompt banks to participate less in the $633 trillion over-the- counter derivatives market, Tabb Group LLC estimates.
China’s interest-rate swaps rose the most since June this week as the central bank drained funds from the banking system, and on speculation the government will speed up the process of relaxing controls on borrowing costs.
Australian banks are set for a lending boost as Prime Minister Tony Abbott champions ventures to revitalize the economy, accelerating some of the more than A$80 billion ($72 billion) of infrastructure projects.
Trading in short-term interest-rate futures on Nasdaq OMX Group Inc.’s NLX European exchange is increasing, reflecting market share gains while IntercontinentalExchange Group Inc. moves Liffe onto its platform.