Surge in US Corporate Bond Trading Tops $61B Daily as Secondary Market Absorbs Demand
Market activity in US corporate debt accelerated sharply in January, with average daily turnover near $61 billion, pushing asset managers to source inventory mainly from the secondary market when new issuance cannot meet demand. Short-term pressure on primary underwriting has translated into heavier trading volumes, wider bid-offer swings for some credits, and concentrated buying by large portfolio managers.
The figure reported by Crisil Coalition Greenwich represents about a 11% increase versus the prior-year January average, underscoring elevated turnover and faster rotation of paper. Dealers are handling larger trade flow, which increases intermediation needs and can raise temporary funding and balance-sheet costs for broker-dealers who step in to warehouse lots.
Portfolio managers are adapting execution tactics: they are accepting smaller fills across more counterparties, using algorithmic liquidity tools more frequently, and tilting toward more liquid issuers to minimize market impact. For issuers, the mismatch between investor demand and primary calendar capacity can lift new-issue concessions, altering pricing dynamics for upcoming offerings.
This shift concentrates price discovery in the secondary market and increases the importance of intraday liquidity metrics and dealer inventory positions as leading indicators. If elevated turnover persists, market structure may evolve: more electronic trading, expanded liquidity pools, and higher reliance on trade-report analytics to manage execution risk.
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