Q3 2025 Sees Strong Fixed Income Issuance Amid Economic Fluctuations
New York, Wednesday, 15 October 2025.
Fixed income issuance in Q3 2025 remained robust at $2.8 trillion, marking the sixth consecutive quarter above $2.5 trillion, despite slight quarterly and yearly declines.
Continued Strength in Fixed Income Issuance
The Securities Industry and Financial Markets Association (SIFMA) has reported that fixed income issuance for the third quarter of 2025 reached $2.8 trillion. This marks a sustained strong performance in the fixed income market, with issuance remaining above $2.5 trillion for the sixth consecutive quarter. Despite a slight decline of 0.3% from the previous quarter and a 3.7% decrease from the same period last year, the market’s resilience is notable given the economic fluctuations currently impacting global financial systems [1].
Asset Class Performance
Among the key asset classes, three out of six demonstrated positive quarter-over-quarter growth. Mortgage-backed securities (MBS) issuance rose by 8.6% in Q3 2025, reaching $489.4 billion, while corporate issuance increased by 7.5% to $554.3 billion. However, U.S. Treasury securities saw a decline of 3.3% from the previous quarter, although they still maintained a substantial issuance of $1.2 trillion [1].
Economic Implications
The persistence of high issuance levels suggests strong investor demand for fixed income products, which is critical for maintaining liquidity in financial markets. The Federal Reserve’s decision to lower the target range for the federal funds rate to 4.00%-4.25% in September 2025 may have played a role in supporting this demand by making borrowing more affordable, thus encouraging corporate and government issuers to take advantage of the favorable conditions [1][2].
Market Context and Future Outlook
The current economic environment, characterized by fluctuating interest rates and geopolitical tensions, presents both challenges and opportunities for fixed income markets. Investors are likely to continue seeking safe havens such as Treasury securities, despite their recent quarterly decline, while corporate bonds and MBS may attract more attention due to their recent growth. Looking forward, the market will closely watch the Federal Reserve’s monetary policy decisions and geopolitical developments to gauge their potential impacts on fixed income issuance and trading volumes [1][3].