BOSTON--(EON: Enhanced Online News)--State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE:STT), and Bloomberg announced today enhancements to Bloomberg’s Fixed Income ETF Basket service (BSKT<GO>). Bloomberg’s BSKT <GO> tool automates the process of gaining access to liquidity necessary to create and redeem fixed income ETFs, and integrates functionality from across the Bloomberg Terminal, including Bloomberg’s Trading Solutions Order Execution (TSOX), Portfolio Analytics and Risk (PORT) and Fixed Income Trading (FIT) solutions.
“In offering clients improved access to the benefits of Fixed Income ETFs, these innovations give portfolio managers more choices and flexibility to customize their bond exposure.”
The enhancement increases the efficiency of fixed income ETF basket creation and redemption by enabling dealers to proactively provide existing bond inventory from which providers can create targeted baskets.
“During the first nine months of 2016, investors have added more than $77 billion of net new inflows into bond ETFs, which underscores the demand for increased liquidity and transparent exposure in the fixed income markets,” said Tim Coyne, head of Institutional Sales and Global Capital Markets for SPDR ETFs at SSGA. “In offering clients improved access to the benefits of Fixed Income ETFs, these innovations give portfolio managers more choices and flexibility to customize their bond exposure.”
Since the introduction of BSKT<GO> in late 2014, SSGA clients have used the service to streamline ETF basket creation and redemption by automating the communication of their daily requirements to targeted recipients. Authorized dealers can then view and respond to these opportunity sets, create baskets, submit them to providers for approval, and monitor the status of submissions. With the enhancements in BSKT 2.0, dealers can more proactively participate in this process, by sharing existing inventory, from which providers can choose to create targeted baskets for each dealer.
“With the success of our initial partnership with State Street to automate the creation and redemption process for Fixed Income ETFs, we are thrilled to announce BSKT 2.0 which will now enable clients and dealers a more automated and efficient way to create ETF shares using their existing bond inventory,” said Dave Mullen, senior business manager for Fixed Income ETF products and ETF trading platform at Bloomberg. “This enhancement creates an additional way for State Street’s institutional clients to source liquidity in the market.”
About State Street Global Advisors
For nearly four decades, State Street Global Advisors has been committed to helping financial professionals and those who rely on them achieve their investment objectives. We partner with institutions and financial professionals to help them reach their goals through a rigorous, research-driven process spanning both active and index disciplines. We take pride in working closely with our clients to develop precise investment strategies, including our pioneering family of SPDR ETFs. With trillions* in assets under management, our scale and global footprint provide unrivaled access to markets and asset classes, and allow us to deliver expert insights and investment solutions.
State Street Global Advisors is the investment management arm of State Street Corporation.
*Assets under management were $2.4 trillion as of September 30, 2016. AUM reflects approx. $40 billion (as of 9/30/2016) with respect to which State Street Global Markets, LLC (SSGM) serves as marketing agent; SSGM and State Street Global Advisors are affiliated.
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Professional service, which provides real time financial information to more than 327,000 subscribers globally. For more information, visit http://www.bloomberg.com/company or request a demo.
Important Risk Information
Investing involves risk including the risk of loss of principal.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.
Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor. All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information and State Street shall have no liability for decisions based on such information.
Expiration date 12/31/2017