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MarketAxess (MKTX) Partners With Investortools for Muni Trading

MarketAxess Holdings Inc. MKTX recently partnered with Investortools to expand the integration of its municipal bonds. Its offerings would be displayed on the Investortools Dealer Network (“IDN”). This partnership would combine MarketAxess’ trading abilities and Committee on Uniform Securities Identification Procedures offerings with Investortools’s trading and analytics tools, resulting in a wholesome view of the fixed-income market.

This collaboration is built upon MKTX and Investortools’ existing partnership from 2016. Investortools is a software-based firm specializing in trading, compliance and finding solutions for the portfolio management of fixed-income securities. With the new partnership, Investortools’ customers can access MKTX’s offerings within the IDN. Through the IDN, asset managers can get direct click-to-bid and click-to-trade options.

Through this partnership, MKTX can leverage its already existing position as the fastest-growing marketplace for municipal bonds. The company’s integration of municipal bonds with the IDN positions it well for growth in the future. MarketAxess derives most of its revenues from commissions, which is set to grow through this partnership as trading volume increases.

Using the IDN toolkit, clients will be able to automate searching, allocation, optimization etc. This would reduce the time required to measure separately managed account portfolio construction to days from months. MarketAxess’s electronic trading platform provides liquidity in the secondary market for credit products. Liquidity is generated through institutional and broker-dealer clients participation in fixed-income trading.

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The company’s strength lies in efficiently processing transactions with valuable clients order flows and its technology to help manage risks. As the company gains insights into the fixed-income market through this partnership, it is set to bring more innovation in this space, fueling top-line growth in the future.

Price Performance

The company’s shares have gained 1.5% month to date compared with the 0.8% rise of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research


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Zacks Rank & Key Picks

MarketAxess currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader Finance space are Assurant, Inc. AIZ, American International Group, Inc. AIG and Old Republic International Corporation ORI. Each of these companies currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Assurant’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 18.2%. The Zacks Consensus Estimate for AIZ’s 2023 earnings suggests an improvement of 25%, while the same for revenues suggests growth of 2.7% from the respective year-ago reported figures. The consensus mark for AIZ’s 2023 earnings has moved 24.4% north in the past 30 days.

The bottom line of American International outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 9.2%. The Zacks Consensus Estimate for AIG’s 2023 earnings is pegged at $6.56 per share, suggesting growth of 44.2% from the respective year-ago reported figure. The same for revenues suggests an improvement of 8.5% from the prior-year actual.

Old Republic’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 29.9%. The Zacks Consensus Estimate for ORI’s 2023 earnings is pegged at $2.4 per share. The same for revenues is pegged at $7.6 billion for 2023.

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American International Group, Inc. (AIG) : Free Stock Analysis Report

Assurant, Inc. (AIZ) : Free Stock Analysis Report

MarketAxess Holdings Inc. (MKTX) : Free Stock Analysis Report

Old Republic International Corporation (ORI) : Free Stock Analysis Report

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