Market Trends of United States Fixed Income Assets Management Industry
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.
