Bond traders are vanishing

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Bond traders are vanishing as slumping fixed-income revenues deter the world’s biggest banks from making markets in Europe.

Bloomberg News reports that the average number of dealers providing prices for European corporate bonds dropped to a low of 3.2 per trade last month, down from 8.8 in 2009, according to data compiled by Morgan Stanley.

The three largest U.S. banks -- JPMorgan Chase, Bank of America and Citigroup - posted their worst combined quarterly trading revenue since 2011 in the fourth quarter, led by a 23 percent drop in fixed-income, currencies and commodities.

The decline in trading is making it harder for investors to buy and sell company securities, raising concern that it will be difficult to get in and out of positions in times of market stress.

Hit the link below to access the complete Bloomberg article:

Bond Traders Vanishing as Liquidity Evaporates

 

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