Fixed Income Asset Management Market Size

Fixed Income Asset Management Market Size

Fixed Income Asset Management Market was valued at USD 64.9 trillion in 2022 and is estimated to register a CAGR of over 6% between 2023 and 2032. Changing demographic trends, such as an increase in retirees or those nearing retirement age, contribute to the business growth. As more investors allocate funds to fixed-income assets, asset managers have a larger pool to manage, enabling them to diversify portfolios and optimize returns. According to the European Fund and Asset Management Association, in 2021, the total AuM in Europe increased to USD 33,859.0 billion.

The increasing popularity of regular interest payments is fueling the market growth. Investors are drawn to fixed-income securities due to their predictable and stable interest earnings, providing a reliable income stream. This demand prompts asset managers to include a variety of fixed income products in their portfolios, leading to the fixed income asset management industry expansion.

Default risk linked to corporate bonds and debt securities poses a significant hindrance to the fixed income asset management market growth. Investors are wary of potential losses due to issuer defaults, particularly during economic downturns. The fear of such risks can deter investors, especially those seeking stable returns, from participating in the fixed income market. This reduced investor confidence can limit market growth.