Electronic bond trading stalled in volatile markets

Bid/offer spreads on bond platforms spiked in March and the buy side struggled to trade

Corporate bond trading volumes soared in March, as panic over the impact of coronavirus sparked a flurry of investor activity. But the proportion of bonds traded on two main electronic platforms shrank. Buy-side traders say banks withdrew from the venues during the volatility, making price discovery an even harder task than usual.

“Electronic trading saw a breakdown in functionality during the height of the volatility spike,” says Jason Fromer, head of US trading for fixed income, currencies