Average daily trade sizes across all US credit fell 12% month-on-month (MoM) to US$363 thousand after strong July performances, but still grew by 3% year-on-year (YoY).
Average daily notional volumes were down 2% YoY and 14% MoM to US$42 billion.
Electronic trading in investment grade (IG) US credit was up three percentage points YoY for August, reaching 51% of the market. This also marks a one percentage point gain on July’s data.
In high yield (HY) credit, e-trading took 33% of the market – down one percentage point YoY, but a two percentage point increase since July.
HY trading volumes are up 23% YoY, according to Coalition Greenwich analysis, a trend driven by increased portfolio trading.
Also influencing corporate bond trading volumes are credit ETFs, the firm’s report noted. A spike in activity for the instruments was recorded following Jerome Powell’s Jackson Hole speech, it says, with volumes 43% higher than the full-month average.
READ MORE: Makeup removal time for Powell at Jackson Hole
However, interest in credit ETFs is waning, the report states, attributing a reduced ETF-to-cash ratio (now at 16%) to improved bond market liquidity and new exposure products being launched.
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