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Analyzing Execution Quality in Portfolio Trading

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–News Direct–

U.S. credit portfolio trading (PT) volumes have grown significantly over the past few years, with record volumes recorded through the first quarter of 2024 across the market as a whole and on the Tradeweb platform. As usage of the protocol evolves and new use cases arise, we continue to monitor the critical trends in portfolio trading and how they are impacting U.S. credit markets today.

This analysis will explore one of the key drivers of the portfolio trading evolution: execution quality. As we discussed in a previous piece, execution quality can have many dimensions. In this piece, we will focus on the transaction cost – defined as the price paid for the basket versus market mid. We will delve into the core factors, including various portfolio trade construction and market factors, which influence trading costs and their implications for portfolio trading on Tradeweb.

Bid/Offer Spread

First, lets look at measuring execution quality. We do this by calculating the percentage bid/offer spread (%BOS) captured in each trade by determining the gap between the Tradeweb Ai-Price bid/offer spread and the actual level of each completed trade. We use this metric to normalize the bid/offer spread across the liquidity spectrum. Within this construct, execution where the client is paying full bid/offer is represented as 0% and execution at Mid is 50%.

As the chart below illustrates, weve seen a steady improvement in execution quality over the last couple of years, with %BOS captured trending around 40-45%, up from roughly 30% in 2022. This trend demonstrates that as portfolio trading volumes and adoption have grown, dealers have become more comfortable pricing their baskets competitively, with clients now trading closer to Mid than in years prior.

Role of Pre-Trade Data

The importance of reliable pre-trade data has also become an increasingly critical component in global credit markets. This theme is relevant throughout the trade life cycle in portfolio trading, beginning at the portfolio manager level, where it is used to help determine which bonds should be traded, and at the execution level, where it is used to help determine which dealers should receive the list.

As leaders in portfolio trading, we have an abundance of reliable trade data to examine trends in execution quality and what they mean for the markets overall. We analyzed thousands of portfolio trades over dozens of attributes to identify the factors that proved to be statistically significant in explaining execution quality. These factors are broadly categorized as Portfolio and Market Factors:

  • Portfolio Factors are properties the client can control within their portfolio trade construction. The most significant drivers within these factors were average line item size, weighted average liquidity score and ETF overlap; the percentage of bonds in a portfolio trade that are also constituents in the relevant ETF. For this analysis, we compared portfolio trades to iShares ETFs (LQD for Investment Grade portfolios and HYG for High Yield portfolios).
  • Market Factors are properties outside the clients control due to overall market conditions. The market factor that stood out the most was the ETF premium/discount at the time of execution.

Portfolio Trade Construction Matters

Digging deeper into these categories, if we look at the median %BOS captured across these baskets for each determining factor, we can begin to understand how these metrics drive execution quality.

As outlined in the tables below, we see that as the notional per line item increases, the expected cost of the whole basket increases. This trend is not surprising, because it generally costs more to trade larger size risk. When that large size is spread over many line items at the basket level, the overall cost to trade the basket goes down. In terms of liquidity, generally, if a basket is more liquid, it will cost less to trade.

The results around the ETF overlap are also intuitive. Generally, the closer to an ETF the portfolio trade is, the easier for dealers to hedge and price the basket.

How do these portfolio construction factors interact?

We can see from the tables above how the factors individually affect overall trade execution. However, it is also necessary to know how these factors interact as the effect of one factor may depend on others. We find this easiest to interpret if we analyze the execution quality from each bucket combination.

Consider the table below. It illustrates that, on average, the best execution for investment grade portfolios is achieved when baskets have a size of less than 50,000 per line item and average liquidity score greater than seven and an LQD ETF overlap of more than 70%. This implies that by optimizing basket construction across all three metrics, its possible to attain better expected execution costs (0.4bp better than mid in the below example) than is implied by optimizing any one metric (0.1bp better than mid shown in the Average Line Item Size table above). This trend is also observed in High Yield (HY) portfolios.

Market Factors The ETF Premium/Discount Effect

We also found that the premium/discount between the ETF market price and the intraday Net Asset Value (iNAV) of the underlying constituent bonds is essential in explaining overall trade cost.

For example, consider a scenario where the constituent LQD bonds traded cheaper than LQD on the exchange. This market dislocation could prompt dealers to buy bonds to create shares of LQD, which they could then sell in the secondary market at a higher level than the underlying value of the bonds. Therefore, we found that if clients were selling (buying) portfolios when the bonds were cheaper than the ETF, they received better (worse) pricing.

The upward slope on the chart below demonstrates this effect; as the premium gets larger, execution quality improves when clients are selling. This effect was symmetric for clients buying bonds from dealers when they were more expensive than the ETF, as shown by the downward slope below.

Conclusion

This analysis shows that portfolio composition and market-driven factors are essential in predicting a range in which a basket might typically trade. Tradeweb has taken these findings and incorporated them into our new pre-trade analytics for portfolio trading. By using these tools, clients can gain further insight into what drives execution quality and fine-tune portfolio trade construction, potentially unlocking more liquidity at better prices.

About Tradeweb Markets

Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 50 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves more than 2,500 clients in more than 70 countries. On average, Tradeweb facilitated more than $1.5 trillion in notional value traded per day over the past four fiscal quarters. For more information, please go to www.tradeweb.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, our outlook and future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading Risk Factors in documents of Tradeweb Markets Inc. on file with or furnished to the SEC, may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this release are not guarantees of future performance and our actual results of operations, financial condition or liquidity, and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this release. In addition, even if our results of operations, financial condition or liquidity, and events in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this release, they may not be predictive of results or developments in future periods.Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release.

Contact Details

Tradeweb Media Contact

Savannah Steele

+1 631-655-4225

Savannah.Steele@Tradeweb.com

Company Website

https://www.tradeweb.com/

View source version on newsdirect.com: https://newsdirect.com/news/analyzing-execution-quality-in-portfolio-trading-587273413

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Press Release

Transform Your Vehicle into a Mobile Billboard

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ColorFab Digital Advertising LLC, Dubai based vehicle branding company, celebrates 8 years in advertising business.

Dubai, Dubai, United Arab Emirates, 24th Dec 2024, Grand Newswire – ColorFab Digital Advertising LLC Dubai specialize in vehicle branding solutions that turn your ordinary vehicles into extraordinary mobile advertisements. We bring your vision to life with eye-catching designs and durable materials. With years of expertise in custom vehicle wraps, decals and fleet graphics, we help businesses make a bold and lasting impression on the road.

Whether you’re looking to brand one vehicle or a fleet, we deliver solutions that are both impactful and cost-effective.

Transform Your Vehicle into a Mobile Billboard

Vehicle Branding Process:

With a focus on creativity and professionalism, our team ensures your brand stands out on every road and every corner. From concept to installation, we provide seamless service that amplifies your visibility and leaves a lasting impression wherever you go.

We offer innovative and custom designs, printing, installation to help businesses enhance their brand visibility and providing assistance with the necessary approvals from the Roads and Transport Authority (RTA) and Dubai Police.  

Our team combines expertise in graphics design, printing and vehicle application to deliver durable, attention-grabbing wraps and decals that make a lasting impression. We offer a variety of services including full vehicle wraps, partial wraps, window graphics, vinyl lettering and more, ensuring that your vehicle’s brand presence is tailored to meet your specific needs.

Whether you need a single car wrap or a cohesive fleet design, we provide cutting-edge materials, vibrant designs and seamless installations. Our team works closely with you to ensure your brand stands out wherever your vehicles go.

Transform Your Vehicle into a Mobile Billboard

RTA Advertisement Approvals:

We offer our services to get advertisement permit from RTA and Dubai Police CID NOC for Vehicle Color Change on customer behalf for Dubai registered vehicles.

Our Advertisement Approval Services:

  • Vehicle Advertising Certificate
  • Advertising Permit for Motorcycle
  • Advertising Signboard Permit
  •  

Documents Required for Advertisement Permit:

  • Advertisement Design on Vehicle
  • Trade License copy of advertisement requesting company
  • Vehicle Registration Card Copy

 

Quality & Customer Satisfaction:

ColorFab Digital Advertising LLC Dubai has established itself as a major key player in vehicle branding, with a focus on quality, reliability, and customer satisfaction, ColorFab is your trusted partner for all your vehicle branding needs. 

We understand that every brand has a unique story, and we work closely with our clients to create custom designs that reflect their brand identity. Our goal is to ensure your vehicles not only stand out but also serve as a mobile advertisement, promoting your brand wherever they go.

Transform Your Vehicle into a Mobile Billboard

About ColorFab Digital Advertising LLC

ColorFab Digital Advertising is Dubai based advertising company deals in sticker printing, vehicle branding, banner printing, flex printing, canvas printing, rollup stand, popup stand, display stand, exhibition stand, offset printing and signage work to cater all your indoor and outdoor advertising needs.

ColorFab Digital Advertising is dynamic, and customer focused company driven by its passion for large format digital printing to cater all your indoor and outdoor advertising needs. We have experience in signage fabrication, installation of all types of signage solutions. We fabricate all kind of signage like Neon Sign, Acrylic Sign, 3D Sign, Flex Sign, Stainless Steel Sign and Safety Sign.

Why Choose Us?

Some of the factors that make us a reliable business partner and distinguish us from our competitors include:

  • Custom, high-impact designs tailored to your business.
  • Top-tier materials for long-lasting and weather-resistant branding.
  • Fast turnaround times with exceptional attention to detail.

In essence, ColorFab Digital Advertising combines creativity with technology to deliver impactful digital marketing solutions that are measurable, effective and tailored to the unique needs of each client.

Turn traffic into opportunities and every journey into a branding success. 

With ColorFab Digital Advertising, your business is always on the move!

Media Contact

Organization: ColorFab Digital Advertising LLC

Contact
Person:
ColorFab

Website:

VEHICLE GRAPHICS

Email:

info@colorfab.ae

Address:Dubai

City: Dubai

State: Dubai

Country:United Arab Emirates

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Press Release

The light of TCM inheritance, the doctor’s benevolence creates miracles

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When modern medicine occupies the forefront of the medical field with its rapid development, there is an ancient and profound medical wisdom, which is protecting the health of quite a few people in the East with its unique techniques and incredible dialectics with its unique charm and curative effect — that is, Chinese traditional medicine.

Recently, a inheritor carrying the essence of traditional Chinese medicine for thousands of years, with its excellent traditional Chinese medicine skills and contributions, won the “traditional ancient Chinese medicine complex disease conditioning non-genetic bearer”, “traditional ancient sense and qi conditioning non-genetic bearer”, “traditional Chinese medicine secret recipe inheritor” and “traditional Chinese acupuncture and massage inheritor” and other honors, becoming a bright star of traditional Chinese medicine culture inheritance and development. He is Mr. Huang Shengxi.

国家认证荣誉

Under the influence of a family of traditional Chinese medicine since his childhood, Mr. Huang Shengxi’s path as a doctor was destined to be extraordinary. He was a doctor at the age of 6 and a doctor at the age of 9. This kind of growing up experience has given him a far better understanding of Chinese medicine than ordinary people. College, he is carrying medicine box, footprints all over the place, with practical actions to practice the “doctor benevolence” oath.

Today, in more than 40 years of practicing medicine, Mr. Huang Shengxi has not only helped countless patients regain their health, but also accumulated valuable experience in medical records and unique wisdom of traditional Chinese medicine.

Traditional Chinese medicine (TCM), a medical art with a long history, emphasizes the unity of nature and man. Generations of TCM practitioners believe that the human body is closely related to nature, and the change of seasons and the rotation of the sun and the moon all affect the balance of Yin and Yang and the circulation of qi and blood in the human body. Mr. Huang Shengxi also knows this very well. He often says: “To learn Chinese medicine is to learn how to live in harmony with nature and understand your own body, just like understanding the changes of the four seasons and adapting to nature, so that you can keep healthy and prevent diseases.” Therefore, in his diagnosis and treatment process, Mr. Huang Shengxi not only uses the traditional Chinese medicine to look, smell, inquire and cut, and the four diagnoses combined, but also integrates his profound insight into the laws of nature, so that every patient can feel the profound and humanistic care of traditional Chinese medicine culture.

中医四诊

In the face of the current situation of poverty caused by illness in modern society, Huang Shengxi always has a compassionate heart. He believes that health should not be the privilege of a few people. So he decided to share with more people what he has learned throughout his life, as well as the tried and tested solutions to diseases, the secret recipes and techniques that have been the essence of thousands of years of TCM wisdom.

Mr. Huang Shengxi hopes that by teaching TCM related knowledge, ordinary people can master the ability to manage their own health and that of their families, and make TCM a powerful weapon to protect the health of each family, so as to improve the health level of the whole society and reduce the heavy burden caused by diseases.

Simple herbs, moxibustion sticks, acupuncture and moxibustion, these traditional Chinese medicine techniques that have been passed down for thousands of years, in the hands of Mr. Huang Shengxi, have a magical power to protect health. The following are some specific cases of patients treated by Mr. Huang Shengxi:

Case 1:10 minutes for a girl in a wheelchair to stand and walk

On December 10, 2024, when Mr. Huang Shengxi was attending the annual meeting of his company in Chengdu, Sichuan Province, China, a girl in a wheelchair, around 20 years old, accompanied by her family, came for help. According to Huang’s diagnosis, the girl was unable to stand or walk due to cerebral palsy and muscular atrophy caused by a stroke.

After the diagnosis was verified by the girl’s family, Mr. Huang Shengxi performed traditional Chinese acupuncture on the spot for the girl. Before each injection was dropped, Mr. Huang always gently informed the girl of the changes that were about to take place in her body, as if planting seeds of hope in her heart.

With the silver needles weaving accurately between the girl’s acupuncture points, the reactions that indicate improvement are miraculously revealed one by one. The girl’s face, also gradually blossomed a long-lost smile, which is undoubtedly the joy of rekindling hope for life. And when the last silver needle gently pulled out, the girl can already walk under the support of her family.

Case 2: Overcoming the “undying cancer” and helping diabetics regain their health

Once diagnosed, diabetes, a chronic disease likened by modern medicine to an “undying cancer,” seems to be synonymous with endless insulin injections, strict blood sugar control, and a strict diet. However, in his class, Huang Shengxi’s unique understanding of how to regulate blood sugar in diabetic patients is like a beacon that illuminates the road to recovery for many patients.

After listening to the teachings, many students have implemented blood sugar management strategies based on Huang Shengxi’s traditional Chinese medicine theory for themselves or their families. They have witnessed miraculous changes – blood sugar levels have been effectively controlled and the haze of diabetes has gradually lifted.

Patients were able to regain the health and vitality of the past, bid farewell to those days of monotonous color because of diet, and life once again bloomed free and colorful light. Under the guidance of Mr. Huang Shengxi, diabetes is no longer an insurmountable obstacle, and the “immortal cancer” of modern medicine has been defeated by traditional Chinese medicine!

This year, in order to let more diabetic patients return to health, Mr. Huang launched the “Diabetes contract conditioning” service, promising to sign a rapid conditioning, blood sugar reversed to the normal range of 3.9-6.1 mmol/L!

Case 3: The three-year-old child was anxious and crying all day, and the whole family was not at peace

In 2024, a mother came to Mr. Huang Shengxi with her 3-year-old son in her arms. The mother’s eyes were filled with anxiety and helplessness as her son was restless and crying all day long. At an age when he should be curious about the world, he is indifferent to everything around him.

So his mother took him across the country, visiting famous doctors, visiting hospitals in the country, going wherever she heard there was a solution, but in the end, she received a heartbreaking diagnosis of mental retardation caused by brain damage.

When she was disheartened, she was introduced to learn that Mr. Huang Shengxi’s use of traditional Chinese medicine has been quite effective for many difficult and complicated diseases. So she went to Mr. Huang Shengxi’s consulting room with the intention of trying. After carefully understanding the child’s condition, Mr. Huang Shengxi gently took over the child, no matter how amused the child was only bursts of crying. So Mr. Huang Shengxi put the child on the ground, let it play, and made a bowl of Chinese medicine with a traditional Chinese medicine, and asked the mother to coax the child to take it.

The miracle happened quietly in just one hour. The child’s cries subsided and the mother’s calls began to be answered. After two days of taking the prescription, the baby’s crying almost ceased for no reason.

Huang Shengxi explained, “The child cried because the adult held him in his arms for a long time, so the child lost the chance to ‘earth’. The spleen and stomach correspond to ‘earth’ in the five elements, so for a long time, the spleen and stomach are naturally unbalanced. While the adult body temperature is high, the child’s body temperature is also high, and the long-term high temperature makes the child’s internal fire too heavy, resulting in anxiety. Let the child play more on the ground, one is “grounded gas”, the second is through play, the body’s high temperature is released, and then through the daily diet to fill the imagination with nutrition, the child’s symptoms can naturally heal.”

After listening to the mother, the heart is both surprised and unbelievable: the original child on the ground, is also a kind of treatment, the original so simple method, can bring such significant changes. She witnessed the changes of the child, and could not help but be filled with emotion: “Traditional Chinese medicine is amazing! Traditional Chinese medicine really has so many unexpected ‘magic prescriptions’.”

The above is just a microcosm of Mr. Huang Shengxi who has been practicing medicine for more than 40 years and has solved difficult and complicated diseases for patients through traditional Chinese medicine theory.

Mr. Huang Shengxi believes that traditional Chinese medicine is not only a treasure of China, but also a treasure of all mankind. He is eager to spread this ancient wisdom, which has been condensed by traditional Chinese medicine practitioners for more than 5,000 years, to every corner of the world, so as to benefit more patients and allow more people to benefit from the miraculous curative effects of traditional Chinese medicine. To this end, with an open attitude, he warmly welcomes Chinese medicine enthusiasts from all over the world, regardless of age, gender or nationality. As long as he believes in Chinese medicine and is willing to learn Chinese medicine, Mr. Huang Shengxi is very willing to teach what he has learned throughout his life.

It is foreseeable that as Mr. Huang Shengxi’s unique TCM theory spreads all over the world, the light of TCM wisdom will brighten the lives of more people. His story, his medical skills and his legacy will become a bridge connecting different countries and cultures, and lead a new trend in global health.

Let us hope that under the guidance of Mr. Huang Shengxi, the wisdom of traditional Chinese medicine will benefit all mankind, and the light of health and well-being will spread to every corner of the world.

925d9b024c462cf0d2d3090c4dbd9ae

City:Chang Sha

Company Name: Beijing Bosirui Institute of Traditional Chinese Medicine

Website:www.bjbosirui.com

Telephone: 13132758413

Contact: Renina

Email Address: jt_xuan26@163.com

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Press Release

Global Digital Marketplace Paving the Way for Financial Growth and Strategic Success

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Abu Dhabi, United Arab Emirates, 26th Dec 2024 – EdenMountain has launched the world’s first digital marketplace for Enterprise Non-Operating Rights (ENORs), marking a transformative moment in how businesses and investors approach intellectual property. Founded in 2023, EdenMountain is a pioneering fintech and legal-tech company enabling enterprises to monetize unused intellectual property in a debt-free, non-dilutive manner while offering a new and strategic asset class to investors and operators.

ENORs represent a groundbreaking asset class. These are licensed, non-operating rights of a company’s intellectual property (IP) in regions where the company has no active operations. By selling ENORs, businesses can transform unused rights into immediate liquidity without issuing debt or equity. Simultaneously, buyers gain exclusive access to strategic IP with options for resale, operational expansion, or partnerships. This dual benefit creates unparalleled opportunities for enterprises to unlock the value of idle assets and for buyers to gain first-mover advantages in untapped markets, fostering global business growth and innovation.

For businesses, ENORs provide a scalable, debt-free avenue for raising funds. By monetizing non-core markets or regions outside expansion plans, sellers can generate immediate cash flow. Moreover, ENORs offer the flexibility of including a Repurchase Option, allowing businesses to buy back their ENORs within a specified period if strategies evolve. This innovative approach empowers businesses to secure financial resources without compromising equity or incurring debt, creating a flexible and strategic pathway for growth.

For buyers, ENORs open doors to a unique asset class that combines strategic and financial potential. These assets offer exclusive IP rights in emerging markets, with options to resell, establish operations, or build partnerships. With EdenMountain’s standardized legal framework and global compliance, buyers can seamlessly transact and diversify their portfolios with low-risk, high-growth opportunities in industries ranging from healthcare and technology to manufacturing and consumer products.

The EdenMountain Marketplace not only facilitates the initial sale of ENORs but also supports a thriving secondary market. Buyers can resell acquired ENORs, ensuring liquidity and maximizing returns. This dynamic ecosystem benefits a wide range of stakeholders, from operators expanding into new territories to investors seeking innovative assets with growth potential. All ENOR transactions on EdenMountain are governed by standardized legal agreements under the laws of England and Wales, ensuring global enforceability and compliance. This structure enables sellers to scale transactions efficiently and buyers to engage in multiple deals without additional legal complexities or costs.

 

With over 290 ENORs already listed across more than 13 industries including automotive, technology, and F&B, EdenMountain has completed transactions in the UK, Europe, and GCC markets. Plans are underway to expand into North America, Asia, and Africa, further broadening the marketplace’s impact and appeal. EdenMountain’s ENORs represent a paradigm shift in capital access and investment. By bridging the gap between unutilized IP and market opportunities, the platform offers businesses a non-dilutive financing alternative and investors a compelling new avenue for growth and diversification.

EdenMountain invites businesses, operators, and investors to explore this groundbreaking asset class. Discover how ENORs can unlock new financial strategies and market opportunities at www.edenmountain.com. The EdenMountain team will also be present at the Web Summit in Doha in February 2025, where they will share insights on alternative financing and global commerce.

About EdenMountain

 

EdenMountain, founded in 2023, is a pioneering fintech and legal-tech company that has launched the world’s first digital marketplace for Enterprise Non-Operating Rights (ENORs). The platform enables businesses to monetize unused intellectual property in a debt-free, non-dilutive manner, offering investors access to a unique asset class with high-growth potential. With over 290 ENORs listed across various industries, EdenMountain is reshaping how companies raise funds and expand globally, while creating new opportunities for investors in untapped markets.

Media Contact

Organization: EdenMountain

Contact Person: Harry Garthwaite

Website: http://www.edenmountain.com

Email: support@edenmountain.com

City: Abu Dhabi

Country: United Arab Emirates

Release Id: 26122421927

The post Global Digital Marketplace Paving the Way for Financial Growth and Strategic Success appeared on King Newswire. It is provided by a third-party content provider. King Newswire makes no warranties or representations in connection with it.

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