How Corporate Bond Liquidity Is Shifting in 2026

In Episode 53 of The Bond Investing Podcast, Lucas and Luna explore a quiet but seismic shift in corporate bond liquidity. With the 10-year Treasury yield hovering at 4.48 and the 30-year at 4.97, the hosts examine how electronic trading platforms and new SEC rules are changing the way institutional investors buy and sell credit. Lucas breaks down data from the TRACE system showing that average trade sizes for investment-grade bonds have dropped 40 percent since 2020, while the number of daily trades has surged. Luna points to the rise of portfolio trading—where dealers swap baskets of bonds in a single ticket—and what that means for liquidity during stress events. They discuss how the shift from 'riskless principal' to agency trading models affects execution costs for pension funds and insurance companies. No ticker-tape reading, just a clear-eyed look at the plumbing beneath the bond market's surface. #CorporateBonds #BondLiquidity #ElectronicTrading #TRACE #PortfolioTrading #SECRules #InvestmentGrade #FixedIncome #Treasuries #YieldCurve #MarketStructure #PensionFunds #InsuranceCompanies #Finance #BondInvestingPodcast #FexingoBusiness #BusinessPodcast #Episode53 Keep every episode free: buymeacoffee.com/fexingo