US Fixed Income Asset Management Market Analysis
The United States Fixed Income Assets Management Industry is expected to register a CAGR of 1.5% during the forecast period.
2019 was the year where everything went right for fixed income in the United States. The Federal Reserve (Fed) reverted to easing mode, government bond yields collapsed, credit spreads narrowed and overseas demand for US assets was insatiable. For 2020, it is a little more nuanced. Government bond yields are almost half what they were in late 2018. Credit spreads - across both high yield and investment-grade - are approaching multi-year lows.
The increased global stock of negative-yielding debt, which peaked at $17 trillion in 2019, has driven the disconnect between valuations and fundamentals.
US Fixed Income Asset Management Market Trends
Distribution of US Fixed Income Assets - By Investment Style
The concept of index investing in fixed income is not as well established as in equities in United States. Most US fixed income assets (74%) are not managed by asset managers including those held by individuals, insurance companies, official institutions, etc. The remainder is managed in the sense that active managers, index managers, hedge funds, and others manage these assets with the objective of either tracking or outperforming an index. The below infographic showcases approximately $40 trillion US fixed income market broken down by investment category.
United States Treasury Securities Performance Insights
A number of features contribute to the U.S. Treasury market’s role as a benchmark. Treasuries are backed by the full faith and credit of the U.S. government and are therefore considered to be free of default risk. The creditworthiness and supply of Treasury securities have resulted in a highly liquid round-the-clock secondary market with high levels of trading activity and narrow bid-ask spreads. An infographic presenting the market yield on 10-year Treasury securities over the years is presented below.
US Fixed Income Asset Management Industry Overview
The report includes an overview of asset managers operating across the United States. We wish to present detailed profiling of a few major companies which cover their product offerings, regulations governing them, their headquarters and financial performance. Currently, some of the major players dominating the market are listed below.
US Fixed Income Asset Management Market Leaders
The Vanguard Group
PIMCO
Franklin Templeton Distributors Inc.
Putnam Investments LLC
Oppenheimer Funds Inc.
- *Disclaimer: Major Players sorted in no particular order
US Fixed Income Asset Management Market News
- January 2024, BlackRock has finalized an agreement to acquire Global Infrastructure Partners (GIP), a move that positions it as a dominant player in the global infrastructure private markets investment landscape.
- October 2023, pvest, a Berlin-based fintech company, has partnered with BlackRock to enhance accessibility to investing for millions of Europeans. The collaboration aims to leverage pvest's all-in-one API, which offers trading, settlement, and custody infrastructure for digital wealth management. Additionally, pvest successfully concluded a fundraising round, securing €30 million in investments.
