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Weekly Market Summary
Nov 3 to Nov 7, 2025
Extra Credit*
- The bond market is getting faster as AI powers Equitification 2.0. From ultra-fast execution in Treasuries to smarter price discovery in municipals, every asset class is moving, each in its own lane. And the talent is catching up: AI-skilled market-facing roles have jumped from 1% in 2017 to nearly 5% in 2025.
- Humans still matter and voice liquidity is not going away. Electronic trading is stuck at 60% for US Treasuries and 50% for corporates – not because the market is stubborn, but because algos have made space for voice. When trades get tricky or markets turn choppy, people prefer talking to people, not an algo quoting mid. Turns out, when machines get faster, humans get busier.
- Small issues lead the liquidity revolution. Since 2015, the weekly non-traded rate for the bottom half of the investment-grade bond universe has collapsed from 50% to just 10%. For high-yield bond, this figure has plunged from 35% to 5%. Gains for larger issues have been far more modest – non-traded fell from 10% to 1%.
- Markets are absorbing shocks five times faster. In high-yield, price dislocations that lingered for 10 days in 2002 faded in just two in 2025. Downgrades and macro shifts have been priced in well ahead of time.
As of 11/4/25.
Previous reports
*Source: Morningstar®, Bloomberg, Credit Suisse. OAS is Options Adjusted Spread. 4-year discount margin is used for spread for bank loans. Yield quoted is yield-to-worst or equivalent calculation. YTD Low / High for yields are based on end of week and not intraday movements. Indexes and sub-indexes: Investment-grade corporates represented by Bloomberg US Corporate Bond Index. High-yield bonds represented by Bloomberg US Corporate High Yield Index. Bank loans represented by Credit Suisse Leverage Loan Index. The red and green arrows depicted under Yields, Option Adjusted Spreads, and Prices indicate a higher or lower value from the previous week.
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