Compression trades investopedia
The economic meaning of portfolio compression lies in that it reduces notional outstanding by eliminating matched trades or trades that do not contribute risk to a dealer's portfolio. Recognised as industry best practice, compression can be applied to a wide number of asset classes and products, contributing to reducing systemic risk in the financial markets. triReduce is the market leader of portfolio compression. What does “compression of spreads on high-yield debt” mean? Ask Question Asked 4 years, 9 months ago. Investopedia does a perfectly fine job of explaining it: the compression in the yield spread means that a lot of people are so hungry for high returns that they're ignoring the high risk of junk bonds and buying them anyway.