JPMorgan wanted Eaton Vance deal - Systematic trading in bonds - Traders talk getting in on IPOs
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Dan DeFrancesco
Dec 17, 2020, 17:31 IST
: Traders in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange (CBOE) fill orders shortly before the close of trading on October 28, 2015 in Chicago, Illinois.Scott Olson/Getty
Hiya.
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Nice scoop from the Financial Times on Wednesday regarding the mysterious "Party A" bidder who competed with Morgan Stanley on its plans to acquire Eaton Vance.
Turns out it was JPMorgan. What's even more interesting, JPMorgan, which initially approached Eaton Vance unsolicited before Morgan Stanley, actually had submitted a counter offer that was higher than Morgan Stanley's winning bid.
While that offer was higher than Morgan Stanley's winning bid, Thomas Faust, Eaton Vance chairman and chief executive, declined to re-enter talks with JPMorgan because of an "oral agreement" with Morgan Stanley "not to pursue competing transactions", according to the filing.
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Even in the midst of a pandemic, a handshake deal stands firm.
Trading on many financial markets has largely gone electronic. The bond market, however, has been a noticeable holdout until the past few years.
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But as more trading of US corporate bonds takes place on electronic venues, the strategies firms deploy are changing too.
Bradley Saacks and I dove into the rise of systematic trading taking place in corporate bonds. Some of the biggest players on Wall Street, including AQR, Point 72, and, most recently, Blackstone, have all thrown their hat in the ring.
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