Bond Hoarders Squelch Trading in Record Issuance: Credit Markets
This article is for subscribers only.
Corporate-bond trading is failing to keep up with unprecedented issuance, accounting for the lowest proportion of outstanding debt since at least 2005.
Average volumes of bonds changing hands each day this year represent 0.29 percent of the market’s face value, according to data compiled by Bloomberg and Trace, the Financial Industry Regulatory Authority’s bond-price reporting system. That’s down from 0.32 percent in 2011 and 0.5 in 2005.