Long term U.S. Treasury yields around 5.3% on the 30 year and 4.7% on the 10 year have suddenly put income and bond related products back in the spotlight. Cash and fixed income now compete harder with stocks, which can shift where investors feel most comfortable putting money to work. This article walks through 3 large U.S. asset manager and ETF issuer stocks that are closely tied to this story.

The three stocks covered next are a useful starting sample, while the full screen surfaced 21 more large U.S. asset managers and ETF issuers with similarly focused income and bond narratives that are not discussed here. To go straight to the full list and identify your own highest conviction ideas, analyze the Large U.S. Asset Managers and ETF Issuers Benefiting From Shifts Into Bond and Income Products screener.

MarketAxess Holdings (MKTX)

MarketAxess Holdings runs an electronic bond trading platform that connects institutional investors and broker dealers across U.S. corporate bonds, Treasuries, munis and other fixed income, which ties it closely to any shift toward bond and income products. The company earns essentially all of its roughly $870 million in revenue from end to end trading solutions that bundle execution, data, analytics and post trade services. With a market cap of about $5.7b, MarketAxess gives you exposure to fixed income market structure rather than to any single bond fund or issuer.

For investors watching long term Treasury yields and thinking more about income, MarketAxess offers a way to focus on the plumbing of the bond market as trading becomes more electronic and data driven. High margins, strong returns on equity and a steady dividend describe its profile, while competition, fee pressure and client preferences for phone based block trades create meaningful risks if bond volumes or pricing power soften. The planned ICE takeover, if completed, could reshape the opportunity again. Anyone interested in the bond and income theme has reason to study MarketAxess more closely before deciding how it fits into their portfolio.

MarketAxess appears to be a pure play on the shift to electronic bond trading, yet most attention stops at the trading platform story. Get the full picture with the analysis report for MarketAxess Holdings and see what could change if the ICE deal closes or stalls.

Build your own fixed income opportunity shortlist

MarketAxess Holdings and the other two stocks in this article are examples of what can surface when you use a focused screener on bond and income themes. Use our flexible Screener to blend filters like valuation, growth, balance sheet strength and dividends, or tap into our curated Investing Ideas for ready made starting points.

Moody's (MCO)

Moody’s is a US$84.1b risk assessment giant that helps banks, governments and asset managers judge the creditworthiness of bonds and other debt, which quietly links it to any shift toward fixed income and cash like products. Around US$4.7b of revenue comes from Moody’s Investors Service credit ratings on corporate, structured and government debt, while roughly US$3.7b is generated by Moody’s Analytics data, models and SaaS tools that support risk and compliance work across global finance. For investors, that combination of a toll booth on global debt markets and a growing analytics platform, both in a higher yield world where credit analysis matters more, is the real story to research.

Investors looking at bond and income themes should keep Moody’s in view because it gets paid every time issuers tap debt markets and every time institutions pay for deeper risk tools to understand that debt. You get a capital light business tied to global issuance cycles, strong profitability and an expanding analytics franchise that uses AI to plug its data into clients’ workflows. The flip side is meaningful leverage and a valuation that already reflects a lot of quality, so weaker issuance or higher funding costs would bite. If you want to understand whether the market is paying too much or not enough for that mix, Moody’s is worth a closer look.

Moody’s growth story in credit ratings and analytics looks powerful. Yet the real question is how much of that quality is already priced in. Read the 3 key rewards and 1 important warning sign and see what the market might be missing

Houlihan Lokey (HLI)

Houlihan Lokey is an advisory focused investment bank that helps clients handle mergers and acquisitions, capital raisings, restructurings and complex valuation work. This ties it to this screener through rate driven deal and restructuring activity rather than through direct bond or ETF products. The business leans heavily on Corporate Finance, which generated about $1.6b in revenue, with Financial Restructuring contributing roughly $520 million and Financial and Valuation Advisory about $354 million. With a market cap of roughly $8.9b, Houlihan Lokey provides exposure to dealmaking and restructuring cycles linked to higher borrowing costs instead of to fixed income product inflows.

Houlihan Lokey may suit investors who want exposure to higher rates through deal and restructuring work rather than through bond funds. A large Corporate Finance arm sits alongside a sizeable restructuring practice that can stay active when leverage and funding costs increase, while an expanding valuation and capital solutions offering taps into private credit and complex transactions. The trade off is a high cost base and heavy reliance on senior bankers, plus earnings that depend on M&A and sponsor activity remaining resilient across cycles. For a fuller view of how these factors interact and what could influence returns, investors may want to look beyond the current headlines.

Houlihan Lokey’s deal and restructuring engine could be only part of the story. See how the full cycle picture, fee mix and banker leverage interact in the full narrative for Houlihan Lokey

Seeking Fresh Alternatives For Your Curiosity

Some stocks are already picking up breakout momentum while others stay under the radar for now. Before the crowd catches on and pricing shifts, scan these fresh ideas and consider them carefully.

• Explore potential rebounds in quality assets that have been quietly dropping and screen for 52 high quality undervalued stocks before any momentum changes.
• Review options for higher yields and check the curated 12 dividend fortresses while these income opportunities still trade at current levels.
• Monitor developments in infrastructure and review the curated 39 power grid technology and infrastructure stocks while attention remains focused on older themes.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.