Making Markets
Episode 56 Modernizing The Bond Market
Making Markets

Episode 56: Modernizing The Bond Market

Making Markets

Episode 56

Modernizing The Bond Market

Jon Birnbaum is the founder and CEO of OpenYield. We cover the historical technology gap between equities and fixed income trading, how the market structure of the bond market is evolving, and OpenYield's mission to build a modern trading venue.

Show Notes

(00:00:00) Welcome to Making Markets

(00:01:31) Technological Advancements in Bond Markets

(00:02:19) Catalysts for Innovation in Equity vs. Fixed Income

(00:04:41) Impact of ETFs on Fixed Income Trading

(00:05:06) Emergence of New Market Participants

(00:07:33) Subsectors of Fixed Income and Technology Adoption

(00:08:45) Challenges in Electrifying the Bond Market

(00:10:59) OpenYield's Role in the Fixed Income Market

(00:15:16) Strategies for Building a Trading Venue

(00:18:00) Pricing Models in Bond Trading

(00:23:05) Future of Fixed Income Market Structure

(00:39:17) Future Outlook

Modernizing The Bond Market

Introduction

Eric
My guest today is Jon Birnbaum, the founder and CEO of OpenYield. After over a decade in finance, Jon set out to tackle a challenge close to my heart, bringing a modern trading experience to the world of fixed income. Today he breaks down how market structure, technology, and regulation have shaped the evolution of trading platforms. We also cover the challenges of modernizing bond trading, the role of liquidity providers, and the cold start problem. Please enjoy this conversation with Jon Birnbaum.

A Primer on Fixed Income Trading

Eric
Jon, I'm excited to do this today. This is a topic that is near and dear to my heart, which is fixed income trading. Before we dive into the guts of fixed income, I think it would help people to have a bit of a landscape of equity trading which they might be more familiar with before we dive into fixed income and maybe how they compare and contrast. So in looking at the two asset classes, how would you compare the equity markets to the fixed income markets and why there might be more opportunity and potentially fixed income trading?

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