2013 European Fixed Income Market Sizing: The Sun Breaks Through

by Joséphine de Chazournes, October 7, 2013
Industry Trends
EMEA

Abstract

If global outstanding debt has grown by just 1% between March 2012 and December 2012, European outstanding debt has decreased by 0.1%. Japan is also decreasing, but the US, EMEA, and other countries have growing outstanding debt. However, we estimate that the European secondary trading activity is back on track, having grown by 8% between 2012 and 2013. In 2013, European average daily value in government bonds is estimated at €69 billion overall, up by 7% vs. 2012 levels at €64 billion. We estimate European nongovernment bonds ADV is also up by 10% from 2012 levels to €15 billion in 2013.

“The uncertainty regarding many European countries remains, but the market has gotten used to handling the situation,” says Joséphine de Chazournes, Senior Analyst and author of the report. “Market players are adapting to the new infrastructure, especially the two leading MD2C platforms and the top tier banks that keep holding the fort in FICC.”

Celent sees throughout the various markets the interdealer-broker-to-cIient (IDB2C) trend, slowly becoming more obvious as a solution for the changing market structure, and this report shows how some players are starting to get in that space in between the lines also in cash fixed income.  

This report has the objective of providing an update of the October 2012 Celent report Fixed Income in Europe: Ready for the Tornado?, and hence is a very quantitative report, aiming to size the European cash fixed income market.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

3

Market Overview

4

 

Market Size

4

 

Market Structure

8

The Government Bond Market

15

 

The Interdealer Market

17

 

The Dealer-to-Client Market

18

The Nongovernment Bonds Market

20

 

Financial Debt

20

 

Corporate Debt

21

 

The Interdealer Market

24

 

The Dealer-to-Client Market

25

The Electronic Trading Platforms

27

 

The Interdealer Market

27

 

The Dealer-to-Client Market

28

Conclusion

32

Leveraging Celent’s Expertise

33

 

Support for Financial Institutions

33

 

Support for Vendors

33

Related Celent Research

34

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