(Bloomberg) -- When Glencore bonds were being whipsawed by dropping commodity prices this year, trader Christoph Hock found two fund managers willing to trade — one wanting to wager on a recovery and another hoping to dodge a falling knife.

He didn't have to go far. Both funds are owned by his employer, German asset manager Union Investment, based a stone's throw away from the euro currency monument in Frankfurt. Internal trades like this are happening more and more at some of the world's biggest asset managers globally as banks withdraw from market making.

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