BlackRock Inc., the world’s largest money manager, is planning to set up a bond-trading system that will allow it to make transactions directly with other investors and bypass dealers, the Wall Street Journal reported.
Bill Gross and Larry Fink manage a $3 trillion pile of bonds -- an amount almost as big as Germany’s economy. Their firms, Pacific Investment Management Co. and BlackRock Inc., doubled holdings since 2008, outpacing the market’s growth of 50 percent.
Rising corporate-bond trading signals that liquidity is robust even as Wall Street’s biggest banks cut their inventories of the securities in response to new rules and regulations, according to JPMorgan Chase & Co.
The U.S. Treasury Department proposed exempting foreign exchange swaps and forwards from most of the derivatives rules required under the Dodd-Frank Act, saying the market already meets many of the law’s objectives.