UK corporate bond liquidity: Evidence from MiFID II trade reports
Faizan Wajid, Research Analyst (London)

According to the Financial Conduct Authority (FCA), between 2018 and 2024, a period that included Brexit, the pandemic and record-high interest rates in the UK, the corporate bond market saw activity of £33tn. This compares to the annual activity of ~£350bn from 2011 to 2016, according to the Bank of England’s study. In this literature review, we examine an FCA paper that explores whether liquidity in the UK corporate bond market has deteriorated. We then highlight several fixed-income datasets for readers seeking to replicate this study.