This is all about lack of trust between participants. I can understand it but it has got to a point where things will need to change.
The comments from exchanges (LSE for one this week) where volumes have recovered dramatically this year is illustrating that IPO’s and Rights Issues may now be a far better way for corporates to raise money and is happening. The lack of movement to a more transparent market model in bonds and frustration of regulators to see change embraced will only drive this move forward to the detriment of new issues in bond markets.
The Buyside investment strategy has changed and is now driven by a more buy and hold scenario and unless the banks, buysides, exchanges and regulators all push for open markets with dark pools running in the background nothing will change. Maybe they should look at Government Bond markets first and drive the most liquid markets onto an exchange/COB to get people used to the idea as we know that change to a market that has not really moved on from Big Bang is a very difficult thing to do.
1 Comment. Leave new
This is all about lack of trust between participants. I can understand it but it has got to a point where things will need to change.
The comments from exchanges (LSE for one this week) where volumes have recovered dramatically this year is illustrating that IPO’s and Rights Issues may now be a far better way for corporates to raise money and is happening. The lack of movement to a more transparent market model in bonds and frustration of regulators to see change embraced will only drive this move forward to the detriment of new issues in bond markets.
The Buyside investment strategy has changed and is now driven by a more buy and hold scenario and unless the banks, buysides, exchanges and regulators all push for open markets with dark pools running in the background nothing will change. Maybe they should look at Government Bond markets first and drive the most liquid markets onto an exchange/COB to get people used to the idea as we know that change to a market that has not really moved on from Big Bang is a very difficult thing to do.