Core Viewpoint - The article emphasizes that market fluctuations are a natural part of investing, and that investors should focus on accumulating quality assets rather than reacting emotionally to price changes [1][2]. Group 1: Investment Strategies - During market volatility, investors should forget about price and remember about shares, viewing market downturns as opportunities to acquire more fund shares at lower prices [4]. - A "greed plan" should be established, where investors allocate spare cash into portions to buy more when the market drops by certain thresholds, as significant returns often come from buying during others' fear [6]. - Maintaining core allocations is crucial; as long as the fundamental logic behind the investment remains unchanged, price declines should be viewed as temporary [8]. Group 2: Investment Discipline - Dollar-cost averaging (DCA) should be treated as a discipline rather than a strategy; during market downturns, it is an ideal time to increase investment amounts or frequency [10]. - Understanding that volatility does not equate to risk is essential; rather, it presents opportunities for buying low and selling high, with true risk being the permanent loss of capital [12]. Group 3: Psychological Aspects of Investing - The essence of investing lies in psychology rather than technical skills; patience and adherence to investment principles are key during market fluctuations [13]. - The article concludes that the bull market has not ended, and that downturns should be seen as opportunities for the calm and rational investor [14].

Core Insights - Citadel Securities reported a decline in net trading revenue for the second quarter, but overall revenue for the first half of the year reached a record high due to geopolitical tensions and market volatility caused by Trump's tariffs [1] Financial Performance - Net trading revenue decreased by 8.4% to $2.39 billion in the second quarter [1] - Despite the quarterly decline, total revenue for the first half of the year hit a record $5.77 billion [1] - The company's net profit for the first half of the year grew by 20%, reaching a record $2.66 billion [1] - However, net profit for the second quarter fell by 23% to $922 million [1] Market Context - The increase in market trading volume has been beneficial for banks and market makers since the implementation of tariffs by Trump earlier this year [1]

Core Viewpoint - Market fluctuations, likened to a roller coaster, are an essential part of long-term investing, and investors must learn to navigate these ups and downs [1][3]. Understanding Market Fluctuations - The concept of "Mr. Market," introduced by Benjamin Graham, illustrates the unpredictable nature of market prices, which can swing between optimism and pessimism [3][5]. - Investors with experience and psychological resilience are less likely to be swayed by these market fluctuations [4][6]. Investment Strategy - A sound investment strategy involves buying when prices are significantly below intrinsic value and selling when prices are significantly above it, while ignoring market noise during other times [4][8]. - Market volatility presents opportunities for undervalued buying or overvalued selling [7]. Tools to Mitigate Market Impact - Utilizing objective metrics such as star ratings and valuation indicators can help investors avoid emotional decision-making influenced by market fluctuations [8]. - Historical data shows that market indices tend to rise over the long term, with each bear market bottom likely being higher than the previous one, indicating a general upward trend [8]. Long-term Investment Benefits - Long-term holding of undervalued assets can yield satisfactory returns, even in the absence of a bull market, primarily driven by corporate earnings growth [10][12]. - In bull markets, investors can benefit from both corporate earnings and the additional gains from market enthusiasm, which can be viewed as "extra bonuses" from Mr. Market [13][14]. Conclusion - The roller coaster of market fluctuations is not inherently negative; buying undervalued assets and benefiting from corporate growth can lead to returns that surpass many other investment options [16]. - Maintaining a rational and patient approach, along with a calm mindset, is crucial for successful investing [17].

Core Insights - The article emphasizes the importance of maintaining objectivity and discipline in investment strategies during periods of market volatility, highlighting that emotional reactions can lead to poor decision-making [1] - Historical data shows that stock markets experience significant fluctuations, with a 20% drop occurring approximately every four years, and a 10% drop almost annually, which investors often overlook [3][4] - Long-term investments in stocks have a higher probability of outpacing inflation compared to cash, with success rates increasing significantly with longer holding periods [4] Market Performance - Over the past five years, global stock markets have doubled in value, while cash holdings have only returned 14%, illustrating the superior performance of equities [2] - The MSCI World Index data indicates that in the 53 years leading up to 2025, 30 years recorded drops of over 10%, and 13 years saw declines of 20% or more [3] Investment Strategy - The article discusses a "rotation strategy" based on the VIX index, which suggests that selling stocks during high volatility (VIX above 33) leads to lower returns compared to a long-term holding strategy [5] - Historical analysis indicates that those who react impulsively to market risks often miss out on potential returns, reinforcing the need for a disciplined investment approach [5]

1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Views of the Report - The convertible bond market continued its moderate upward trend during the week of August 4 - 9, 2025, with the price center approaching historical highs, the valuation structure further stretched, and trading activity remaining high. The repair momentum of both medium - low - priced and high - priced varieties increased, and there were improvements in both credit and elasticity preferences. Low - rated issuers frequently initiated downward revisions, concentrated in sectors such as power equipment, pharmaceutical biology, and automobiles. The equity market was dominated by the growth style, with continuous inflows of funds into the science - innovation and manufacturing sectors, and the cyclical and military sectors also performed prominently. The intensity of industry and style rotation increased significantly, and fluctuations might intensify due to short - term sentiment warming. It is recommended to evenly allocate high - quality medium - low - priced individual bonds, considering valuation safety, fundamental support, and liquidity, and appropriately capture event - driven and rotation repair opportunities [2][5]. - Downward revision events in the current convertible bond market are relatively concentrated in sectors such as power equipment, pharmaceutical biology, and automobiles, and some industries like the electronics industry have a relatively high PB during downward revisions. The overall credit ratings of companies initiating downward revisions are relatively low, with AA - grade having the highest proportion, followed by AA and A + grades, indicating relatively prominent conversion pressure for medium - and low - rated issuers. Downward revisions mostly occur during market upswings or after sharp rebounds, suggesting that companies tend to adjust terms when stock prices are relatively supported. The market price and premium rate at the time of downward revision are generally in the medium - to - high range, and the subsequent market reaction is generally positive, with some sectors performing significantly better in the week after the downward revision. It is advisable to pay attention to the impact of the motivation and timing of downward revisions on trading strategies and explore opportunities with underlying stock support and valuation repair potential [9]. - The A - share market's major indices continued to strengthen during the week, with small - and medium - cap science - innovation stocks being active. The Growth style dominated, with the STAR 50 and CSI 2000 leading the gains. Although the marginal improvement in investors' risk appetite was observed, the net outflow of institutional funds continued, mainly due to profit - taking behaviors such as portfolio rebalancing. In terms of industries, the cyclical and military sectors led the gains, with non - ferrous metals, machinery, and textile and apparel among the top performers. The consumer sector was fragmented, with textile and apparel and home appliances recovering, while commercial retail was weak. The trading volume distribution showed that the electronics, pharmaceutical biology, and machinery sectors were the most active. Overall, market hotspots were concentrated in high - elasticity and policy - driven areas. It is recommended to focus on high - elasticity sectors such as military and machinery while moderately and evenly allocating to less - crowded and stable sectors, balancing flexibility and risk control [9]. - The convertible bond market continued its upward trend, with small - cap bonds outperforming large - cap ones, and the market's risk appetite recovered. In terms of the valuation structure, the repair momentum was strong in the medium - low - priced and high - priced ranges, while the core medium - priced range faced pressure and declined. Low - priced bonds were supported by credit improvement, and high - priced bonds stabilized due to elasticity - driven trading. The implied volatility fluctuated at a high level, indicating a strong market expectation of future fluctuations. In terms of sectors, cyclical sectors such as machinery, non - ferrous metals, and national defense and military led the gains, and the pharmaceutical biology and basic chemical sectors had a high concentration of funds. Most of the top - performing individual bonds were driven by the strength of their underlying stocks, featuring high elasticity and medium - to - long - term durations. It is generally recommended to maintain a balanced allocation between high - growth and fundamentally stable sectors and be vigilant against short - term fluctuations in highly - crowded sectors [9]. - The primary market supply of convertible bonds was stable during the week, with one new bond available for subscription and seven companies updating their issuance plans, indicating continued active progress. In terms of terms, 27 bonds announced that they were expected to trigger downward revisions, 7 announced no downward revisions, and 1 proposed a downward revision. On the redemption side, 10 bonds were expected to trigger redemption, 3 announced no early redemption, and 7 announced early redemption. Overall, the primary supply continued to be released, and events related to terms and redemptions were frequent, with continued speculative sentiment. It is recommended to pay attention to the impact of these events on pricing and trading opportunities [9]. 3. Summary by Relevant Catalogs 3.1 Characteristics of Convertible Bonds with Downward Revisions - By industry, from January to July 2025, the power equipment industry had the most downward revisions, with 8 convertible bonds announcing downward revisions, followed by the pharmaceutical biology and automobile industries, each with 5 convertible bonds announcing downward revisions. Among the industries with downward revisions, the electronics industry had the highest arithmetic average PB, with 4 convertible bonds announcing downward revisions and an arithmetic average PB of 3.6, followed by the petroleum and petrochemical and computer industries, with 1 and 2 convertible bonds announcing downward revisions respectively, and arithmetic average PBs of 3.5 and 3.3 respectively [17]. - The overall credit ratings of companies initiating downward revisions are relatively low. By credit rating distribution, among companies initiating downward revisions from January to July 2025, AA - grade convertible bonds accounted for the highest proportion, with 15 downward revisions, accounting for 30.6%, followed by AA and A + grades [19]. - In terms of market timing, downward revisions mostly occur during market upswings or after sharp rebounds, reflecting that companies tend to adjust terms when stock prices are relatively supported. When downward revisions occur, the market price and premium rate are generally in the medium - to - high range, and the subsequent market reaction is generally positive, with the automobile sector's convertible bonds having an average increase of 10.1% in the week after the downward revision, followed by the pharmaceutical biology sector with an average increase of 7.1% [9][21]. 3.2 Weekly Market Theme Review 3.2.1 Equity Market Theme Review - During the week of August 4 - 9, 2025, the trading themes in the equity market were active, with the military and high - end manufacturing themes leading the gains. The consecutive limit - up index led all themes, with a weekly increase of 17.8%. The trading themes such as the daily limit index, the first - board non - ST index, and the first - board index all had weekly increases of over 13%, indicating that short - term funds' attention to trend - following trading continued to increase. The high - end manufacturing and military sectors performed well, with the liquid - cooled server index and the general machinery selected index rising by 9.0% and 8.1% respectively, and the satellite navigation index and the satellite Internet index rising by 6.8% and 6.4% respectively. The science and technology sector continued to show a differentiated pattern, with the robot industry chain recovering strongly, while the optical module (CPO) index and the circuit board index declined. The pharmaceutical sector declined, with the innovative drug index and the weight - loss drug index falling by 2.2% and 2.8% respectively. In terms of fund flow, the weekly trading volumes of the first - board index and the daily limit index both exceeded 30 billion yuan, indicating increased activity of short - term funds. Overall, market sentiment continued to strengthen, and short - term funds shifted to high - elasticity sectors such as the military and high - end manufacturing, mainly driven by themes. At the same time, it is necessary to guard against the risk of valuation convergence in high - valuation sectors [28]. 3.2.2 Convertible Bond Market Review - During the week of August 4 - 9, 2025, the convertible bond market continued to be strong, with small - cap bonds leading the gains and large - cap bonds performing relatively weakly. The valuation structure was significantly differentiated, with significant repairs in the medium - low - priced and high - priced ranges and pressure on the core medium - priced range, reflecting that speculative funds were becoming more cautious at high levels. The implied volatility fluctuated at a high level, indicating a strong market expectation of future fluctuations. At the industry level, cyclical sectors such as machinery and non - ferrous metals led the gains, and the trading volume of the pharmaceutical biology and basic chemical sectors accounted for a relatively high proportion. The consumer sector showed increased differentiation. In terms of individual bonds, high - elasticity and medium - to - long - term duration bonds were driven by their underlying stocks and performed prominently, with a significant resonance between themes and cyclical factors. It is recommended to focus on high - quality individual bonds with strong valuation repair momentum, fundamental support, and underlying stock catalysts [32]. 3.3 Weekly Market Tracking 3.3.1 Major Indices and Sector Performance - During the week of August 4 - 9, 2025, the A - share market's major indices recovered. The Shanghai Composite Index rose 2.1% week - on - week, the Shenzhen Component Index rose 1.2%, and the ChiNext Index rose 0.5%. Small - and medium - cap science - innovation stocks performed well, with the STAR 50 Index leading the gains, rising 3.5% week - on - week, the CSI 2000 Index rising 1.8%, the CSI 500 Index rising 0.7%, and the SSE 300 Index rising 1.2%. The net outflow of institutional funds continued, but the pressure eased. The average daily trading volume of the whole market was about 1.7 trillion yuan, a week - on - week decrease of 0.1 billion yuan. The net outflow of institutional funds increased from 3.87 billion yuan on Monday to 12.52 billion yuan on Tuesday, then decreased slightly to 11.05 billion yuan on Wednesday, and then increased significantly again, reaching 34.92 billion yuan on Friday, possibly indicating short - term profit - taking behaviors. The average daily net outflow of institutional funds during the week was 17.82 billion yuan, a decrease of 11.32 billion yuan compared with the previous week, indicating a warming market sentiment [33]. - The A - share market continued its structural differentiation pattern during the week, with cyclical and military sectors performing strongly. The non - ferrous metals sector led the gains among Shenwan primary industries, rising 5.7% week - on - week, followed by the machinery and textile and apparel sectors, rising 5.4% and 4.6% respectively, and the national defense and military sector rising 4.4%. The consumer sector was fragmented, with the textile and apparel sector rising strongly, the home appliance sector showing signs of recovery, rising 2.9%, and the commercial retail sector performing weakly, falling 0.9%. Cyclical sectors generally recovered, with the coal, light manufacturing, and basic chemical sectors rising 3.2%, 3.2%, and 2.3% respectively. Overall, market funds were concentrated in cyclical and military sectors. It is recommended to focus on high - elasticity and policy - favored varieties, while also considering cyclical sectors and guarding against structural risks. In terms of trading volume, the electronics sector had the highest average daily trading volume of 220.78 billion yuan, a week - on - week decrease of 11.13 billion yuan, accounting for 13.2% of the market. The pharmaceutical biology sector had an average daily trading volume of 164.82 billion yuan, a week - on - week decrease of 29.78 billion yuan, accounting for 9.9%. The machinery sector's average daily trading volume was 159.71 billion yuan, a week - on - week increase of 33.52 billion yuan, accounting for 9.6%. The non - bank financial sector had a significant outflow of funds, with its average daily trading volume decreasing by 30.55 billion yuan week - on - week [39][40]. 3.3.2 Convertible Bond Market Performance - The convertible bond market performed actively during the week of August 4 - 9, 2025, with all major indices rising. Small - cap bonds led the gains, with the Wind Small - Cap Convertible Bond Index rising 2.8%, the mid - cap index rising 2.4%, and the large - cap index rising 1.7%. The market continued its upward trend, and investors' risk appetite increased. The trading activity of the convertible bond market recovered, with the average daily trading volume reaching about 89.8 billion yuan, a week - on - week increase of 7.36 billion yuan, but the overall sentiment of funds tended to stabilize. Currently, there is a resonance between themes and small - cap convertible bonds in the market, and the fund allocation has shifted [49]. - When divided by the parity range, the overall valuation of the convertible bond market has stretched. In the parity range below 90 yuan, the valuation has generally stretched, with the premium rate in the range below 80 yuan stretching by 2.80% and the 80 - 90 yuan range stretching by 1.41%. In the 90 - 100 yuan parity range, the 90 - 100 yuan range stretched by 1.82%, and the 100 - 110 yuan range stretched by 1.62%. In the medium - to - high parity range, the valuation was slightly differentiated, with the premium rate in the 110 - 120 yuan range stretching by 2.29%, the 120 - 130 yuan range stretching by 2.07%, and the range above 130 yuan compressing by 0.35%. Overall, the valuation of each range divided by the parity range has mainly stretched, mainly due to the "asset shortage" in the convertible bond market, where the short - term elasticity of convertible bonds may be greater than that of underlying stocks [51]. - When divided by the market price range, the valuation of convertible bonds continued to show a differentiated pattern, with a structural adjustment overall. The valuation in the range below 90 yuan compressed by 1.41%, the 90 - 100 yuan range slightly stretched by 4.36%, the 100 - 110 yuan range's premium rate significantly compressed by 17.84%, the 110 - 120 yuan range stretched by 4.20%, the 120 - 130 yuan range stretched by 7.74%, and the range above 130 yuan stretched by 3.16%. Overall, the valuation of medium - low - priced individual bonds in the 90 - 100 yuan range and high - priced individual bonds above 110 yuan strengthened significantly, while the valuation of the core 100 - 110 yuan range deeply corrected, and low - priced bonds below 90 yuan were also under pressure [53]. - The weighted implied volatility of the convertible bond market's balance fluctuated downward during the week, and the market sentiment became more cautious. The weighted implied volatility of the whole - market convertible bond balance rose from 26.4% on Monday to 27.8% on Wednesday and then declined, closing at 27.1% on Friday, an increase of about 2.1 pct compared with the previous Friday. From a historical percentile perspective, the implied volatility continued to be at the upper end of the 25% - 75% historical percentile range. Considering the 90 - day rolling average and the ± 1.5 - times standard deviation fluctuation range, the current implied volatility continued to operate outside the upper boundary of the channel, indicating an increased market expectation of future fluctuations in convertible bonds [54]. - The median price of convertible bonds fluctuated upward during the week, rising from 125.6 yuan last Friday to 128.6 yuan, a week - on - week increase of 2.3%. The convertible bond market showed signs of recovery, and the median price of convertible bonds was still higher than the 75% historical percentile, indicating that the market trading sentiment remained at a relatively high level, but the risk appetite was marginally shrinking [55]. - The convertible bond market's performance by sector was generally strong, and the concentration of funds increased slightly. Among 27 industries, the machinery sector led the gains, rising 5.7%, followed by the non - ferrous metals and national defense and military sectors, rising 4.2% and 4.1% respectively, and the beauty care and computer sectors also performed strongly, rising 4.0%. The consumer sector was relatively weak, with the commercial retail and food and beverage sectors rising 1.5% and 1.3% respectively. In terms of funds, there was a high degree of concentration, with the pharmaceutical biology sector having the highest average daily trading volume of 57.15 billion yuan, accounting for 12.8%, followed by the basic chemical and machinery sectors, accounting for 11.5% and 8.6% respectively. The three sectors together accounted for 32.9% of the trading volume, a slight decrease in concentration compared with the previous week. The machinery and non - ferrous metals sectors led the gains, indicating a slight shift in investors' risk appetite, while the pharmaceutical biology and basic chemical sectors still attracted a relatively high amount of funds. The consumer sector showed a more obvious differentiation pattern, with the beauty care sector performing well and the commercial retail sector performing weakly [57][60]. - Individual convertible bonds generally strengthened during the week, with technology and cyclical sectors performing well. Among them, 431 convertible bonds had a week - on - week increase of 0 or more, accounting for 93.1% of the total number of outstanding convertible bonds in the market. The top five convertible bonds in terms of week - on - week increase during the conversion period were Dongjie Convertible Bond (machinery, 39.6%), Jiaojian Convertible Bond (construction and decoration, 23.3%), Julong Convertible Bond (basic chemicals, 19.3%), Gaoce Convertible Bond (power equipment, 18.3%), and Borui Convertible Bond (pharmaceutical biology, 17.7%), with conversion premium rates of 3.5%, 17.9%, 5.9%, 0

Core Insights - The article emphasizes the importance of understanding market dynamics and the behavior of traders, suggesting that successful trading requires adapting to market conditions rather than trying to predict them [1][10] - It highlights a systematic approach to trading, focusing on key indicators and metrics to gauge market sentiment and potential turning points [3][4] Group 1: Trading Philosophy - The philosophy of trading is likened to understanding water currents, where traders must learn to navigate rather than measure the water quality [1] - A methodical approach is advocated, with the team making only twelve core decisions annually while focusing on three key charts: liquidity, market sentiment, and critical price levels [3][4] Group 2: Market Indicators - Key indicators for market analysis include monitoring trading volume relative to historical averages and assessing volatility levels to identify potential market shifts [3] - The article discusses the significance of behavioral indicators, such as the sudden silence in trading activity, which can signal impending market crises [6] Group 3: Learning from Mistakes - The workspace contains capsules representing past trading mistakes, serving as educational tools to highlight the importance of risk management and the lessons learned from historical errors [6][9] - The narrative stresses that true expertise in trading comes from understanding human behavior and market psychology rather than solely relying on technical indicators [4][10] Group 4: Technology and Human Insight - The article reflects on the limitations of AI in trading, particularly its inability to grasp the human emotions involved in decision-making during volatile market conditions [8] - It suggests that while technology can enhance trading strategies, the essence of successful trading lies in human judgment and emotional intelligence [8][9]

Market Overview - The stock market has experienced significant volatility, entering correction territory and reaching new all-time highs within months, leading to mixed investor sentiment [1][2] - Approximately 35% of investors are optimistic about the next six months, while 43% are pessimistic according to a survey by the American Association of Individual Investors [1] Investment Opportunities - The Vanguard S&P 500 Growth ETF (VOOG) has reached a new all-time high, climbing over 38% since its low in early April [4] - This ETF is considered more resilient to market volatility and is likely to help investors build wealth despite potential downturns or recession risks [5] ETF Composition and Performance - The Vanguard S&P 500 Growth ETF includes only 212 stocks from the S&P 500, focusing on those with the highest growth potential [6] - The ETF has delivered an average annual return of 15.79% over the last 10 years, outperforming the Vanguard S&P 500 ETF, which has an average return of 13.62% [8] Investment Strategy - Investors are advised that timing the market can be less important than remaining invested over the long term, as holding investments can mitigate losses during downturns [9][10] - Historical examples show that holding the Vanguard S&P 500 Growth ETF through market declines can lead to significant total returns, even after substantial drops [11][13] Long-Term Perspective - A long-term investment horizon of at least five to seven years is recommended for minimizing risks associated with market fluctuations [15] - The Vanguard S&P 500 Growth ETF is positioned for long-term growth, emphasizing that time in the market is more valuable than attempting to time market entry [16]

Core Viewpoint - The discussion emphasizes the importance of value investing and the role of market volatility in identifying undervalued assets, highlighting that a larger market fluctuation can create more opportunities for value investors [5]. Group 1: Investment Philosophy - The company does not experience anxiety about what to buy but rather about the decision-making process when considering an investment [4]. - The investment approach is not focused on popular or obscure stocks but on identifying assets that meet specific aesthetic and value criteria [3][4]. - The company believes that patience and a long-term perspective are crucial for realizing the value of investments, regardless of short-term market fluctuations [3]. Group 2: Market Volatility - Market volatility is viewed as a beneficial factor for value investing, as it can create opportunities to find undervalued stocks [5]. - The company suggests that significant upward or downward market movements can influence investment decisions, allowing for adjustments in portfolio management [5]. Group 3: Relationship with Investors - The importance of maintaining communication and support for investors during periods of market anxiety is highlighted, emphasizing the role of fund managers in addressing investor concerns [6]. - The company acknowledges that conveying investment philosophies accurately to investors is challenging, but it is essential to respond to their anxieties [6]. Group 4: Integrity and Consistency - The concept of aligning actions with words is stressed, indicating that a lack of consistency can lead to self-deception among fund managers [7]. - The company advocates for a disciplined approach to ensure that investment practices reflect stated principles, which is seen as a critical capability for long-term success [7][8].

Core Viewpoint - The A-share market is experiencing fluctuations and consolidation, with significant inflows into small-cap ETFs driven by favorable policies and market conditions [1] Group 1: Market Performance - As of August 7, at 14:14, the 1000ETF Enhanced (159680) and the CSI 2000 Enhanced ETF (159552) fell by 0.29% and 0.16% respectively [1] - During the trading session, both ETFs saw a combined net inflow exceeding 80 million, with a total net inflow of over 200 million in the past five days [1] Group 2: Investment Strategy - The ongoing release of policies supporting specialized and innovative enterprises is enhancing the performance of quantitative enhancement strategies in small-cap stock investments [1] - The high volatility in the market is contributing to liquidity premiums, which is driving explosive growth in small-cap ETFs [1] - Investors are advised to adopt a phased investment strategy to manage risks, as some small-cap stock valuations are reaching historically high levels due to continuous capital inflows [1]

Core Insights - MarketAxess Holdings Inc. (MKTX) reported Q2 2025 earnings per share of $2, exceeding the Zacks Consensus Estimate by 3.1%, and up from $1.72 a year ago [1][10] - Total revenues increased by 11% year over year to $219.5 million, also surpassing the consensus mark by 0.6% [1][10] - The strong performance was driven by record-high trading volumes amid heightened market volatility, although elevated expenses partially offset this growth [2][10] Financial Performance - Commission revenues rose 12% year over year to $191.8 million, beating the Zacks Consensus Estimate by 1.3% [4] - Information services revenues were $13.1 million, a 4% year-over-year increase, but missed the consensus mark by 2% [4] - Total expenses increased by 10% year over year to $127.6 million, primarily due to higher employee compensation, technology, and G&A costs [5][10] - Net income grew 10% year over year to $71.2 million, exceeding estimates, while the net income margin decreased by 50 basis points to 32.4% [5] Trading Volumes - High-grade trading volume reached $481.1 billion, a 19% year-over-year increase, surpassing the consensus estimate by 3.8% [6] - High-yield trading volume increased by 25% year over year to $104.9 billion, with an average daily volume (ADV) rise of 27% to $1.7 billion [7] - Total credit trading volume grew 20% year over year to $1.04 trillion, with total credit ADV rising 22% to $16.8 billion [8] Balance Sheet and Cash Flow - As of June 30, 2025, cash and cash equivalents were $462.8 million, down from $544.5 million at the end of 2024 [9] - Total assets increased to $1.97 billion from $1.79 billion at the end of 2024 [9] - Net cash from operations was $103.7 million, down from $118.8 million a year ago, while free cash flow increased to $113 million from $97.6 million [12] Capital Deployment - MarketAxess repurchased shares worth $36.7 million in the quarter, totaling $80 million year-to-date, with $145 million remaining under the repurchase program [13] - A quarterly cash dividend of 76 cents per share was declared [13] Strategic Outlook - The company aims to execute its long-term growth strategy through product innovation and strategic talent acquisition, focusing on expanding block trading solutions and enhancing portfolio trading capabilities [14]