Not a single respondent believes that direct issuance of securities over the Internet will decline. Six percent of respondents expect electronic trading to account for more than one-quarter of all trading this year. Forty-three percent of respondents expect industry consolidation to have a substantial impact on the U.S. bond markets over the next year. Over the three-year horizon, respondents are somewhat divided on which area will have a great impact on the U.S. fixed income markets. Industry consolidation, tax reform and electronic trading are each evenly cited by about half of respondents as having a major impact on the domestic bond markets over the next three years.
All respondents expect industry consolidation to continue over the next three to five years.
Factors Driving Consolidation Increasing assets under management is cited as the most important factor behind the wave of industry consolidation, with three-quarters of respondents expressing this view.