Fixed income ETF issuer BondBloxx has increased the number of funds trading through Northern Trust’s integrated trading solutions (ITS) service.
Fixed income ETFs have netted approximately US $52 billion in inflows over Q1 2023, accounting for 66 per cent of ETF flows during the quarter. Investors have reallocated significant amounts of their portfolios to fixed income as a result of economic uncertainty and strong performances in the sector, Northern Trust says.
The sector has also shown increased demand for outsourced trading, the firm reports. Using Northern Trust’s ITS service provides BondBloxx with greater access to the bond market, connectivity to institutional liquidity counterparties and the support of Northern Trust’s fixed income trading team.
Leland Clemons, BondBloxx founder, says: "Partnering with Northern Trust to outsource our trading operations has allowed us to quickly grow our business. We have gained access to asset class and market expertise without having to scale an internal trading infrastructure, which allows us to focus on enhancing the product mix and investment insights we offer to our clients.”
Stephanie Farrell, head of ITS for the Americas at Northern Trust Capital Markets, adds: "Our partnership with BondBloxx has been highly effective, allowing them to improve their flexibility and liquidity while expanding access to markets. ITS can support multiple types of asset managers, including long-only, fixed income and alternative, and we look forward to continuing to support BondBloxx as they grow."
