The Depository Trust & Clearing Corporation (DTCC) says that its subsidiary, the Fixed Income Clearing Corporation (FICC), cleared a record $11 trillion in US Treasuries on April 9, an all-time high.
Laura Klimpel, Managing Director, Head of DTCC’s Fixed Income and Financing Solutions, notes that the heightened volume arrives at a time of increased volatility.
“Even in times of market stress, FICC’s ability to effectively process historically high volumes reaffirms the strength of the central clearing model in safeguarding the integrity of the world’s deepest and most liquid market. It also demonstrates the essential value that FICC provides as a critical infrastructure, mitigating risk and reinforcing confidence across financial markets.”
The Trump tariffs have whipsawed markets, including fixed-income. Fears remain that inflation is on the way and perhaps higher interest rates, leading to more uncertainty and thus heightened risk. While leverage may have exacerbated the situation, there are fears that interest in holding US assets is waning. In the end, it comes down to a single phrase. It’s complicated, and markets are still sorting things out.
