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Bond Market Turmoil Sparked E-Trading

Thanks to our multi-venue A2A connectivity, our EMS users also saw a significant pick-up in activity.


When global markets tumbled in December, U.S. corporate bond investors scrambled to sell holdings they feared would drop further. But bank traders weren’t buying, so many fund managers turned to a fast-growing electronic marketplace to reduce their exposures.

Almost one-quarter of all investment-grade corporate bond trades in December were on MarketAxess, the highest monthly market share ever for the digital trading venue. Market share for Trumid Financial LLC, a much smaller electronic corporate bond trading venue, was also above average in December, a spokeswoman for the company said.

Corporate bond liquidity—a hard-to-measure but widely discussed impression of how easily securities can be traded—is perceived to have dwindled over the past decade even as debt outstanding jumped 67% to $9 trillion, according to data from the Securities Industry and Financial Markets Association trade group. The mismatch has stoked fears that the investors who purchased new debt, especially in mutual funds owned by individuals, would be unable to sell out in periods of market turmoil.

Read the rest of the article via the WSJ here 

  • Matt Wirz

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