Fixed income pricing data statistics are essential tools that are used by financial analysts and investors to evaluate the performance of debt securities. These statistics provide valuable insights into the risk and return characteristics of fixed income investments, making them critical for making informed investment decisions.
In this blog post, we will explore fixed income pricing data statistics that are commonly used in the financial industry.
Key Fixed Income Pricing Data Statistics 2023 – MY Choice
- Bid Price: The price at which a buyer is willing to purchase a security. Example: The bid price for a bond may be $98.50 per $100 face value.
- Ask Price: The price at which a seller is willing to sell a security. Example: The ask price for a bond may be $99.00 per $100 face value.
- Mid Price: The average of the bid and ask prices. Example: The mid price for the bond in the above example would be $98.75 per $100 face value.
- Yield: The rate of return on a bond investment, usually expressed as an annual percentage. Example: A bond with a face value of $100 that pays $5 per year in interest has a yield of 5%.
- Spread: The difference between the bid and ask prices. Example: The spread for the bond in the first example would be $0.50 per $100 face value.
- Duration: The sensitivity of the bond’s price to changes in interest rates. Example: A bond with a duration of 5 years will decrease in value by approximately 5% if interest rates increase by 1%.
- Convexity: A measure of the bond’s sensitivity to changes in interest rates, taking into account the curvature of the price-yield relationship. Example: A bond with a high convexity will have a greater increase in price if interest rates decrease than it will have a decrease in price if interest rates increase.
- Credit Rating: A measure of the creditworthiness of the issuer of a bond. Example: A bond issued by a company with a credit rating of AAA is considered to be the least risky.
- Coupon Rate: The annual interest rate of a bond, expressed as a percentage of the bond’s face value. Example: A bond with a face value of $100 and a coupon rate of 4% will pay $4 per year in interest.
- Maturity: The date on which the principal amount of a bond is due to be repaid. Example: A bond with a maturity date of July 1, 2030 will have its principal amount due on that date.
- Yield to Maturity: The expected rate of return on a bond if it is held until it matures. Example: A bond with a face value of $100, a coupon rate of 5%, and a maturity date of January 1, 2035 has a yield to maturity of 4.5%.
Fixed Income Pricing Data Stats
- The global fixed income securities market was valued at $105.9 trillion in 2020 and is expected to reach $138.2 trillion by 2026, growing at a CAGR of 4.3% from 2021 to 2026.
- The US fixed income market is the largest in the world, with a market size of $42.9 trillion in 2020.
- The global corporate bond market is expected to grow at a CAGR of 6.2% from 2021 to 2026, reaching a value of $15.4 trillion by 2026.
- The US government bond market is the largest in the world, with a market size of $21.8 trillion in 2020.
- The global high yield bond market was valued at $2.5 trillion in 2020 and is expected to reach $3.5 trillion by 2026, growing at a CAGR of 5.7% from 2021 to 2026.
Table 1: Fixed Income Pricing Data Benefits Statistics
| Statistics | Description |
|---|---|
| Vesting requirement | Participants in a retirement plan have no vesting rights to future benefits until a service requirement has been met, after which they are 100 percent vested. |
| Benefit reduction | Benefits may be reduced by 3 percent for each year an employee is between age 60 and the age of a plan’s normal retirement, as well as by 6 percent for each year that retirement precedes age 60. |
| Automatic escalation | A feature in a defined contribution plan, such as a 401, that automatically increases an employee’s contribution after a certain time. |
| Flat percentage reductions | Flat percentage per year reductions may approximate actuarial reductions, such as early retirement at age 55 with a reduction of 6 percent per year between age 55 and the plan’s normal retirement age of 62. |
| Vested percentages | An example would be 50 percent vested after 3 years of service, 75 percent vested after 4 years of service, and 100 percent vested after 5 years of service. |
| Survivor annuity | The amount of the survivor annuity may not be less than 50 percent, or more than 100 percent, of the amount payable during the time the participant and spouse are both alive. |
| Straight life annuity | The participant will receive an amount equal to the straight life annuity, and the spouse will receive a proportion of that amount, often 50 percent, should the participant die. |
Table 2: Fixed Income Pricing Data Latest Statistics
| Statistics | Description |
|---|---|
| Issuance | YTD statistics include Issuance $2,779.0 billion. |
| Total value | $52.9 trillion, +5.5% Y/Y. |
| Key features | Non-call yields through 10 years and callable yields thereafter; 5% coupon; 10-year par call; constant maturity; 32 tenor points. |
| Platform | The platform is built on industry-leading technology that facilitates primary trading in over 75% of U.S. ETF assets and 1,800 ETFs. |
| Corporate bond data | MarketAxess corporate bond data covering 35,000 instruments and 90 percent of liquid corporates. |
| Daily yield curves | Daily yield curves are now available, with data from 6 September 2004 onwards, and are calculated and released on a daily basis according to the TARGET calendar. |
| Auction data | Oct 2051 84.48 2.64%, 83.87 2.67%, 84.08 2.66%, 83.43 2.69%, 82.81 2.73%. |
| Maturity data | As of 29 Apr 2023 Maturity Date Remaining Tenor Original Tenor Issue Code ISIN Code Coupon Rate (%) Yield (%). |
Table 3: Other Fixed Income Pricing Data Statistics
| Statistics | Description |
|---|---|
| Benefit participation | Measure expressing one of the following conditions: the percentage of workers with access to a benefit, the percentage of workers who participate in a benefit, or the take-up rate of a benefit. |
| Profits contributions | No matter what the level of profits, 5 percent is contributed to the plan. In a variation of this formula, employers set aside a reserve amount of profits and pay only a fixed percentage of any profits above this amount into the employees’ defined contribution plan. |
| Occupation classification | All workers are classified into 1 of more than 800 occupations according to their occupational definition. |
Fixed Income Pricing Data Facts
- Fixed income securities are debt instruments that provide investors with a fixed rate of return over a specified period.
- The return on fixed income securities is determined by the prevailing interest rates in the market.
- Fixed income securities are issued by governments, corporations, and other organizations.
- The most common types of fixed income securities include bonds, notes, and bills.
- The credit quality of fixed income securities is a critical factor in determining their value.
Fixed Income Pricing Data Benefits
- Fixed income securities provide investors with a predictable income stream.
- Fixed income securities can help to diversify a portfolio and reduce overall risk.
- Fixed income securities can be used to provide income during retirement.
- Fixed income securities are typically less volatile than other investment options, such as stocks.
- Fixed income securities can provide a hedge against inflation.
Fixed Income Pricing Data Trends
- The use of ETFs for fixed income investing has increased in popularity in recent years.
- Environmental, social, and governance (ESG) considerations are becoming increasingly important for fixed income investors.
- The COVID-19 pandemic has led to increased volatility in fixed income markets.
- The use of machine learning and artificial intelligence is becoming more prevalent in fixed income investing.
- The demand for high yield bonds has increased in recent years, driven by investors seeking higher returns.
Fixed Income Pricing Data Adoption
- Institutional investors are the primary users of fixed income securities.
- Retail investors can also invest in fixed income securities through mutual funds, ETFs, and other investment vehicles.
- Fixed income securities are commonly used in pension funds and other retirement savings plans.
- Central banks use fixed income securities as a tool for monetary policy.
- Governments use fixed income securities to finance their operations and infrastructure projects.
Fixed Income Pricing Data Market Analysis
- The global fixed income market is highly fragmented, with a large number of players.
- The market is dominated by a few large players, including BlackRock, Vanguard, and State Street Global Advisors.
- The US fixed income market is the largest in the world, followed by Europe and Asia-Pacific.
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