Introduction

Using Bloomberg analytics to make better pre-trade decisions >

Fixed income TCA: The state of the art >

Addressing the confidence challenge of peer analytics in post trade TCA >

Fixed income portfolio trading 101: Minimize risk and unlock future opportunities >

Introduction

Pre-trade transaction cost analysis (TCA) is still new to the fixed-income space but growing in popularity. Bloomberg has responded to demand for complementary high-level analytics by building a suite of best-execution tools that enable traders to estimate the performance of their orders before executing a trade.

Weighing up the benefits of TCA

TCA provides traders with insights into the fixed-income market to enable them to make more informed trading decisions, such as:

Estimates of how much they will pay in execution costs
The volumes they can buy or sell
The probability of executing the order in a day

Inside this report, we uncover the benefits of pre-trade TCA, how TCA <GO> can be used by traders and how these tools can be customized.

The demand for tailored metrics

The DESK’s TCA survey has shown real appetite amongst buy-side traders for applying analytics to bond trading, with traders seeking ever more sophisticated approaches and granular ways to measure their trading activity. Bloomberg’s Mike Googe, Product Manager BTCA and Ravi Sawhney, Global Head of Trade Automation & Analytics walk through how BTCA is leading the way with its enhanced pre-trade support.

Understanding peer benchmarks

Peer benchmarks are emerging as an important requirement for contextualizing trading performance in fixed income markets, allowing traders to compare their absolute performances against the average performance obtained by their peers trading similar orders. We detail how to use peer analytics for relative analysis in Bloomberg’s post trade TCA (BTCA), and highlight challenges to consider when using peer analytics.

Choosing portfolio trading

Lastly, we explore why traders should opt for portfolio trading and the evolutionary leaps that Bloomberg has made with its own portfolio creation solution.