Corporate bond market liquidity expands across US and Europe

What happened: Corporate bond market liquidity is expanding in the US and Europe, with more frequent trading across a broader range of debt securities from blue-chip issuers. Key numbers: A company's top three bonds were about 35% of its trading volume this month, down five percentage points from January 2023, per Barclays Why it matters: Wider trading lets institutional investors express yield-curve or maturity views, and may narrow the valuation gap between on- and off-the-run bonds. The shift is mostly in investment-grade; high-yield and hyperscaler trading remains concentrated.

Corporate bond market liquidity is expanding in the US and Europe, with more frequent trading across a broader range of debt securities from blue-chip issuers.

Wider trading lets institutional investors express yield-curve or maturity views, and may narrow the valuation gap between on- and off-the-run bonds. The shift is mostly in investment-grade; high-yield and hyperscaler trading remains concentrated.