Average daily notional volumes (ADNV) were up 9% year-on-year (YoY) in US credit markets, reaching US$47 billion. Year-to-date, ADNV is up 21%.
In 2024, the percentage of this volume traded electronically has increased marginally YoY, up two percentage points to 43%.
In both high yield (HY) and investment grade (IG) US corporate bonds, liquidity has improved over the year. The MarketAxess Bid Ask Spread Index has dropped by 27% in HY bonds and by 15% in IG bonds YoY. Coalition Greenwich notes that this is not a direct result of increased overall and e-trading volumes, but states that these factors have brought more participants to the market.
Also impactful has been an increase in portfolio trading and a favourable macroeconomic backdrop for new issuance, the report adds.
As a result of improved bond market performances, ETF volumes decreased relative to market growth in November – by 16% YoY, according to Coalition…
