MarketAxess' Secular Drivers Are Intact, but US Corporate Bond Trading Remains Competitive

MarketAxess operates the leading platform for the electronic trading of corporate bonds. While the company is primarily focused on US securities, 30%-40% of its corporate bond trading volume comes from emerging-market debt and eurobonds, giving the company a strong international presence. MarketAxess also offers trading in US Treasuries and municipal bonds, bolstering its efforts in these sectors through the acquisitions of LiquidityEdge and MuniBrokers in 2019 and 2021, respectively. That said, corporate bonds are the core of MarketAxess’ business, which we expect to remain true, a consequence of being a relative newcomer to the Treasury trading market and the smaller size of the municipal debt market.