Fixed Income Market Structure
The U.S. fixed income markets are a cornerstone of the capital markets, providing efficient, long-term, and cost-effective funding for businesses, governments, and communities. These markets play a vital role in supporting economic growth, job creation, and financial stability, and are among the most closely regulated sectors of the financial system.
SIFMA advocates for policies that promote deep, liquid, and transparent fixed income markets while ensuring they remain efficient and accessible for issuers and investors alike.
By the Numbers
SIFMA Research
- Research Quarterly: Fixed Income – Issuance and Trading
- Research Quarterly: Fixed Income – Outstanding
SIFMA Insights
Key Focus Areas
Strengthening Treasury Market Structure
Recent market stresses have underscored structural challenges in the U.S. Treasury market, particularly the growing mismatch between rising Treasury issuance and the system’s intermediation capacity.
SIFMA supports efforts by policymakers, regulators, and market participants to enhance Treasury market resilience and ensure liquidity under all conditions. We continue to participate in dialogue on clearing, transparency, and access to data that promote efficient and stable functioning.
Preserving Liquidity and the Rule 15c2-11 Debate
In December 2021, the SEC staff announced its intent to apply Rule 15c2-11 – originally designed to protect retail investors from fraud in the OTC equity markets – to fixed income markets. SIFMA strongly opposes this application, as the rule was not created for fixed income securities and would introduce significant market disruption.
Applying this rule without public notice and comment risks constraining liquidity, raising transaction costs, and undermining the efficiency of markets such as Rule 144A securities, which are essential for corporate capital formation. While No-Action relief has provided somewhat of a reprieve for many fixed-income products, reconsideration of the need for this rule and more permanent relief is still needed.
Advancing Infrastructure and Municipal Finance
Municipal securities finance the critical infrastructure that powers our communities – bridges, roads, schools, hospitals, and more. SIFMA advocates for proven financing tools used by over 50,000 state and local governments to fund essential projects and supports policies that help close the national infrastructure investment gap.
We continue to work with policymakers to preserve and expand the federal tax exemption for municipal bonds and strengthen access to capital for public projects.
Strengthening Securitization and Housing Finance
Securitized products are a critical source of funding for consumer and business credit that support economic growth and stability in the U.S. housing market. SIFMA provides policy and market practice recommendations for issuers, sponsors, and liquidity providers with the goal of increasing the efficiency, liquidity, and resiliency of securitization markets.
The U.S. housing market is a central pillar of the economy, representing roughly 18% of GDP and 35% of all private, non-financial debt. SIFMA continues to advocate for sound housing finance policies that promote responsible lending, investor confidence, and long-term market stability.
The Bottom Line
Efficient and resilient fixed income markets are essential to U.S. economic growth. SIFMA is committed to preserving liquidity, transparency, and access to capital—ensuring that businesses, governments, and investors can continue to rely on these markets to finance opportunity, infrastructure, and innovation.
