Bond Stampede Fear Spurs Race For Reform

By 24 June, 2013News

Financial Times

The Financial Times looks at corporate bond liquidity, focusing on how the corporate bond market could standardise itself in a similar way to how the US treasury market has. It goes on to look at the various challenges that the corporate bond market faces in terms of liquidity, and examines various potential solutions that might be available.

Bond specialists agree that there could be an uphill battle to make the switch to standardisation, as issuers might balk at the idea of having their debt maturing in large chunks at regular intervals. Additionally according to GreySpark, secondary liquidity is of little concern to bond issuers; their main focus is upon the primary issuance, ensuring they can borrow the capital they require.

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