Great Pacific Securities (GPS) offers proprietary economic research and a staff of institutional traders experienced in both the fixed income and equity markets.
GPS provides a weekly snapshot of economic announcements from around the globe that the traders at GPS feel are most likely to impact the overall markets. These items include economic releases foreign and domestic testimony and earnings releases.
The firm also subscribes to third party macroeconomic research from Laffer Associates. This economic research provides an outlook on the direction of interest rates, the political climate, and the general state of the global economy.
FIXED INCOME RESEARCH
GPS provides its clients with a monthly “Credit Spread Analysis Book” that contains a snapshot of relative corporate debt and Agency spreads and the changes in those spreads. The spread analysis contained in the report can help clients plan corporate/agency investment strategies by providing valuable insight into the movement of these securities relative to the US Treasury.
The firm has also been quite successful at pairs trading — that is, selling one stock and buying another to capture or pay a predefined spread. The firm executes this type of trade in many small executions to help reduce slippage. This trading strategy is typically used when a client wishes to add alpha to a portfolio without changing credit exposure. This is usually when a company has two outstanding equity issuances with different voting rights, in merger situations, or when the stocks are correlated because they are in the same industry with similar structures. GPS identifies these opportunities and can provide proprietary pairs trading research.