News & Views Article
BondWave Trade Insights-Volume 16
Paul Daley - November 17, 2020

Corporate Bond Trading Cost Update

Download PDF

Virtually all size and type trade costs have fully returned to pre-pandemic levels

In our prior piece (BondWave Trade Insights – Volume 15) we took a deep dive into fixed income trading costs before, during, and after the spike in market volatility related to the pandemic.

Below we examine the corporate bond subset of the data updated through the end of October. The difference between where customer trades are priced and where the inter-dealer market is priced has reverted to pre-pandemic levels. With the exception of small trades in 144a securities (<$100k), all trade costs are within 5 basis points of where they were in January and February.

Customer Pricing vs. Dealer Pricing by Size and Side

Keep on reading:

Fixed Income Equitization

Who thinks about grades in the summer? MD Paul Daley does... at least when it concerns the equitization of the fixed income markets. Check out his perspective on the equitization progress in the areas

July 23, 2024
Institutional Trading Costs for All

MD Paul Daley uses BondWave's Transaction Quality Analytics Benchmarks to reveal fundamental changes in the corporate bond trading environment.

January 23, 2024
The Muni/Treasury Ratio and The Fed Funds Rate Hikes of 2022-23

BondWave's Madhura Katre delves into the Fed's recent rate hikes and the impact on the municipal yield curve and muni/treasury ratio in her latest Trade Insights piece.

October 24, 2023
Corporate Bond Portfolio Trading Examined

Using FINRA's new portfolio trading flag, Paul Daley examines the cost effectiveness of portfolio trades through BondWave's Transaction Quality Analysis lens, which compares transaction costs to a pee

August 9, 2023