Trader Insights
Actionable Ideas for the Power to Trade Smarter
Connecting Traders through Instinct® Loans
Alexandra Ford
Vice President, Leveraged Loan Trading
Ms. Ford: With the recent emphasis on flexible working arrangements, finding ways to stay connected and share ideas is even more important. In this environment, Instinct Loans has become a key tool for generating informed conversations among syndicated loan traders and portfolio managers.
The platform is well-suited to the task of connecting people because it’s designed to improve liquidity by bringing market participants together. Instinct Loans sets fixed, mid-market prices and hosts two simple matching sessions a day, one at 10.00 a.m. and one at 2.00 p.m. Eastern Time. Clients bid or offer against the mids for a low, flat commission. When two participants match, they automatically, immediately and discretely trade. These twice-daily sessions offer structured times for all market participants to see the same information, providing a window into liquidity and prompting discussion around client portfolios and trades. Since its launch in 2016, these matching sessions have provided a cumulative $445 billion of bid and offer liquidity to our clients1.
Instinct Loans continues to successfully meet changing client needs. As trading volumes continue to rise, we remain committed to helping the syndicated loan community trade smarter. In fact, this year’s top Instinct Loans client has executed 31% of its trades on the platform1. For other actionable insights, please see the rest of our Trader Insights series or contact your sales representative.
1 Source: BofA Securities, Inc. as of 01 April 2021
“Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, other commercial banking activities, and tradingin certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp., both of which areregistered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofASecurities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA.
Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed.
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