An annual report examines the quality – or lack of it – of corporate bond data: a serious concern for investment managers seeking to find value in this area, and for their end clients. The study also looks at risks, speed and other issues affecting how financial markets work.

Wealth managers are raising concerns about the quality of corporate bond data, according to SIX, which operates financial market infrastructure in Switzerland and Spain.

In its Future of Finance 2025 study – an annual survey of 291 market participants globally – almost a third (30 per cent) of the 57 wealth managers polled said that bond data remains underdeveloped in terms of quality, while 33 per cent cited a lack of real-time data. Respondents came from Germany, Hong Kong, Singapore, Spain, Switzerland, the UK, and the US.

Uncertain times
Nearly all wealth managers (98 per cent) now regard heightened market uncertainty as a long-term feature, though they are split on whether this represents more of an opportunity (52 per cent) or a challenge (48 per cent).

All wealth managers surveyed reported data-related issues holding back effectiveness, with speed, consistency, and availability the most pressing concerns.

“Corporate bonds clearly remain a core part of client portfolios, but confidence in the asset class will depend on investors getting access to higher quality bond data,” Swati Bhatia, head of fixed income, financial information, SIX, said. “Whether it’s gaps in pricing transparency or delayed updates to corporate actions, even the most esoteric data hole can undermine a wealth manager’s ability to deliver timely, accurate advice.”

The survey also found regional and institutional differences in views on long-term uncertainty. Asset managers (59 per cent) were more likely than investment banks (42 per cent) to expect it to remain a permanent feature. By region, respondents in Singapore (69 per cent) and Switzerland (67 per cent) were the most convinced.

Settlement challenges
Only two-fifths of respondents said they are investing in automated settlement solutions ahead of the transition to T+1. (Several European countries, including the EU and the UK, will move to a "T+1" securities settlement cycle on 11 October 2027, reducing settlement from two business days (T+2) to one. A T+1 settlement is a securities transaction process where the trade is finalised - meaning the securities are transferred to the buyer and the cash is transferred to the seller - on the business day after the trade occurs.)

Almost a third (30 per cent) highlighted resourcing for system and process upgrades as the biggest obstacle, with asset-servicing organisations (38 per cent) and investment banks (35 per cent) the most affected.