What Has Been the Progress and Growth of the Fixed Income Asset Management Market in Recent Years?
The fixed income asset management market has seen considerable growth due to a variety of factors.
• The market size of fixed income asset management has witnessed a fast-paced growth in the recent past. The market is expected to increase from $70684.63 billion in 2024 to $78108.32 billion in 2025, with a compound annual growth rate (CAGR) of 10.5%.
Factors such as variations in interest rates, alterations in regulations, market liquidity, credit quality and default risk, along with macro-economic factors have contributed significantly to the growth during the historical period.
What Can Be Expected from the Fixed Income Asset Management Market Size?
The fixed income asset management market is expected to maintain its strong growth trajectory in upcoming years.
• There is an anticipation of swift expansion in the fixed income asset management market in the coming years. The market size is projected to reach $115691.35 billion by 2029, growing at a compound annual growth rate (CAGR) of 10.3%.
Factors contributing to the growth during the predicted period include interest rate trends, credit spread movements, the form and alterations of the yield curve, expectations of inflation, and regulatory changes. The period will be characterized by an increasing demand for sustainable fixed income investments, growing interest in alternative fixed income assets, tech adoption enhancing data analytics and automation, a heightened focus on liquidity management amidst market volatility, and a rising emphasis on ESG factors in making investment choices.
What Are the Critical Driver Fuelling The Fixed Income Asset Management Market's Growth?
The surge in the interest for income investments is predicted to drive the expansion of the fixed-income asset management market in the future. Financial assets or securities primarily purchased to yield consistent income instead of capital growth are referred to as income investments. The piquing interest in income investments can be attributed to investors' increasing preference for regular returns and steady cash flow in the backdrop of an uncertain economic climate. The use of income investments under fixed-income asset management is for the creation of portfolios oriented towards generating consistent income flows through interest payments, dividends, and other distributions, with an aim to maintain capital. As an example, a European Fund and Asset Management Association (EFAMA) report in June 2024 revealed that undertakings for the collective investment in transferable securities (UCITS) net assets rose to EUR 20.7 trillion ($22 trillion) by end of 2023, marking a 10% hike from EUR 19 trillion ($20 trillion) in 2022. Meanwhile, alternative investment fund’s (AIF) saw a growth of 7% in the same timeline. Hence, the escalating demand for income investments is fuelling the growth of the fixed-income asset management market.
How Is The Fixed Income Asset Management Market segmented?
The fixed income asset management market covered in this report is segmented –
1) By Asset Class: Government Bonds, Corporate Bonds, Municipal Bonds, Mortgage-Backed Securities, Asset-Backed Securities, High-Yield Bonds, Other Asset Classes
2) By Investment Strategy: Core Fixed Income, Active Fixed Income, Passive Fixed Income
3) By End User: Institutional Investors, Retail Investors
Subsegments:
1) By Government Bonds: Treasury Bonds, Sovereign Bonds, Inflation-Protected Bonds, Foreign Government Bonds
2) By Corporate Bonds: Investment-Grade Bonds, Non-Investment-Grade Bonds (High-Yield), Convertible Bonds, Callable Bonds
3) By Municipal Bonds: General Obligation Bonds, Revenue Bonds, Taxable Municipal Bonds, Municipal Bond Funds
4) By Mortgage-Backed Securities (MBS): Residential Mortgage-Backed Securities (RMBS), Commercial Mortgage-Backed Securities (CMBS), Collateralized Mortgage Obligations (CMOs)
5) By Asset-Backed Securities (ABS): Auto Loan-Backed Securities, Credit Card Receivables-Backed Securities, Student Loan-Backed Securities, Other Consumer Loan-Backed Securities
6) By High-Yield Bonds: Junk Bonds, Emerging market Bonds, Distressed Debt
7) By Other Asset Classes: Treasury Inflation-Protected Securities (TIPS), Foreign Currency Bonds, Structured Notes, Hybrid Securities
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What Trends Are Shaping The Fixed Income Asset Management Market?
Key players in the fixed-income asset management arena, such as JPMorgan, are venturing into the development of innovative solutions, including JPMorgan Active Bond ETF (JBND), to establish their market dominance. JPMorgan Active Bond ETF (JBND) are exchange-traded investment funds comprising a robust portfolio that includes assets like stocks, bonds, or commodities, and they are tailored to mirror the performance of specific indices or sectors. For example, J.P. Morgan Asset Management, a financial services company based in the US, unveiled an innovative actively managed fixed-income ETF, dubbed JPMorgan Active Bond ETF (JBND), on the NYSE Arca in October 2023. The strategy of JBND principally revolves around a bottom-up, value-oriented approach that mainly aims to deliver value to its investors. This approach lays considerable stress on security selection, with the objective to maximize total return through predominantly investing in a diversified portfolio of intermediary and long-term debt securities. Within its investment strategy, JBND makes a particular emphasis on securitized debt. The ultimate objective is to surpass the Bloomberg US Aggregate Bond Index over a market cycle ranging from three to five years.
Who Are the Key Players In The Fixed Income Asset Management Market?
Major companies operating in the fixed income asset management market are:
• JPMorgan Chase and Co.
• International Business Machines Corporation (IBM)
• Goldman Sachs Group Inc.
• Oracle Corporation
• State Bank of India (SBI)
• ABB Ltd.
• Fidelity Investments
• BlackRock Inc.
• Adobe Inc.
• Housing Development Finance Corporation Ltd.
• State Street Global Advisors
• Franklin Resources Inc.
• Axis Bank Ltd.
• The Vanguard Group
• T. Rowe Price Group Inc.
• Invesco Ltd.
• Synaptics Inc.
• Wellington Management Company LLP
• Oppenheimer Holdings Inc.
• Pacific Investment Management Company LLC (PIMCO)
• IDFC Ltd.
• Evergreen Investments LLC
What Is The Most Dominant Region In The Fixed Income Asset Management Market?
North America was the largest region in the fixed income asset management market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the fixed income asset management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
