Electronic Credit Trading Surges to Record, Boosting Liquidity

Electronic trading of corporate bonds has reached record levels, as credit-trading algorithms get smarter, grab market share, and make it easier for investors to buy and sell corporate bonds without affecting prices too much.

Banks, money managers and others on average traded $15 billion of company bonds electronically daily in September, according to a report from Coalition Greenwich, looking at both investment-grade and high-yield debt. That record level compares with a $12.7 billion daily average in 2021. For junk bonds, about a third of trading volume was through online platforms last month, up from about a quarter in the same ...