Big Corporate-Bond Trades Wane as Liquidity Ebbs, Says Barclays
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The explosion of issuance in the corporate-bond market is hiding evidence that it may be getting tougher to trade, according to Barclays Plc. And it may prove costly for investors.
It’s a decrease in large transactions that analysts led by Shobhit Gupta point to as a worrying sign in a client note Thursday. The average size of "block" trades -- defined by Barclays as transactions over $5 million -- declined by more than 6 percent over the past year, to $11.1 million from $11.9 million.