The Volcker Rule and other regulations: Regulatory impact on credit market structure

Abstract

Half a decade since the financial crisis, global regulations are causing fundamental changes to credit market structure. Pressure on primary dealer balance sheets, alongside continued growth in corporate debt outstanding, have resulted in a significantly reduced turnover in the corporate bond markets. Investors are being forced to look for new sources of liquidity by leveraging technology to reach a broader group of trading counterparties, including other investors.