MarketAxess Holdings Inc
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$892.00 | Vyqbh | Shrqhctxzs |
MarketAxess' Secular Drivers Remain Intact, but Competitive Pressures Are a Concern
Business Strategy and Outlook
MarketAxess operates the leading platform for the electronic trading of corporate bonds. While the company is primarily focused on U.S. securities, 30% to 40% of its corporate bond trading volume comes from emerging market debt and Eurobonds giving the company a strong international presence. MarketAxess also offers trading in U.S. Treasuries and municipal bonds, bolstering its efforts in these sectors through the acquisitions of LiquidityEdge and MuniBrokers in 2019 and 2021, respectively. That said, corporate bonds are the core of MarketAxess’ business which we expect will remain true, a consequence of the more competitive nature of the treasury trading market and the smaller amount of municipal debt outstanding.