This unlikely stock is the biggest winner since the February stock market top
Bond trading has traditionally been a pretty fusty industry
Which stock has performed best since the market top in mid February?
If you guessed a pharmaceutical company with a promising coronavirus treatment, you wouldn’t be far off. A technology company that enables work-from-home computing would also be a good guess, but also wrong.
How about a financial company?
It’s counterintuitive — but true. MarketAxess Holdings Inc.
has gained 49.14% since the S&P 500’s record close on February 19, according to Dow Jones Market Data, even as concerns about households and businesses facing cash flow problems and rock-bottom interest rates have pushed the financial sector to be the second-worst performing S&P 500 sector this year, behind only energy.
|Company Name||% Change|
|MarketAxess Holdings, Inc.||49.14|
|Regeneron Pharmaceuticals, Inc.
|Citix Systems, Inc.
|Cabot Oil & Gas Corporation
|Gilead Sciences, Inc.
|Take-Two Interactive Software, Inc.
|Source: Dow Jones Market Data|
Yet MarketAxess, which brands itself as “the leader in e-trading for global fixed income,” may be in a sweet spot as investors from individuals to the United States Federal Reserve give bonds another look — as both issuers and buyers.
As MarketWatch’s Philip van Doorn noted earlier in April, MarketAxess increased revenue 35.7% from a year ago in the first quarter — more than pandemic darlings Amazon.com Inc.
and Netflix Inc.
Trading volumes were up 29% compared to a year ago starting in February, company executives said on their quarterly earnings call in late April.