Wall Street Is Getting Cut Out of Bond Market It Long Dominated
- Investors slowly embrace electronic corporate bond trading
- All-to-all trading is a clear sign of moves to come in market
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The banks that have stood in the middle of the corporate bond market for decades are increasingly getting pushed aside.
Electronic marketplaces like MarketAxess Holdings Inc., Tradeweb Markets LLC and Liquidnet Holdings Inc. say that more of the company bond trades that happen on their platforms are between investors directly, without banks necessarily being involved. Known as all-to-all trading, this shift may weigh on revenues for banks that have long profited from being either buyers or sellers in just about every trade in the $9.2 trillion market.