Here are some statistics from the recent Celent report on US Corporate bond trading.
- As of January 2013, holdings of corporate bond inventories at the 21 dealers that trade with the Federal Reserve have declined by 74% to $56.4 billion since the 2007 peak.
- Only 30 bonds a day have more than five trades on either side in institutional size with names changing all the time due to new issues, according to MarketAxess.
- According to ITB, since 2009 odd lots/super-odd lots notional (US$100K–$1M) have seen an increase in daily notional volume of 33%.
- There has been only a modest increase in ADV (up 6%) for trade size US$1M–$25M since 2009.
- Average trade size on RFQ platforms (i.e., MarketAxess) has been declining 5–6% per year.
- Average trade size on MarketAxess high grade is now ~$400K.
- In the US, corporate bonds volumes compiled with TRACE data are only slightly up year on year at just under $12 billion of average daily volume, and it has been rather stable for the past four years
I've integrated some platform specific statistics from Celent into the listing of electronic venues
...sound familiar?
ReplyDeleteMuni Bidding Process Grows More Automated
http://www.bondbuyer.com/issues/122_58/muni-bidding-process-grows-more-automated-1050044-1.html
"Broker-dealers have developed ever more advanced electronic programs to help them sort through thousands of bid-wanteds they see daily in an automated way, which is driving efficiency, to a degree, in the marketplace.
But the muni market has a long way to go, "