Three years after DirectBooks, US bond market still phoning it in zawya.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from zawya.com Daily Mail and Mail on Sunday newspapers.
Wall Street s three-year effort to
modernize the way billions of dollars of new corporate bonds are
sold via phone, chat message or email, is making slow progress. Broad adoption of the.
Wall Street's three-year effort to modernize the way billions of dollars of new corporate bonds are sold via phone, chat message or email, is making slow progress. Broad adoption of the fintech communications platform backed by big banks called DirectBooks has so far been stymied by worries about the cost of maintaining the technology and other tech hurdles. Changing an organization's behavior is difficult and takes sustained effort, said DirectBooks CEO Rich Kerschner.
Investor appetite for a type of debt issued mostly by banks to boost their capital is showing early signs of revival, just as interest rates on an estimated $120 billion of such securities are due to reset to much higher levels. So-called preferred securities, which are one of the riskiest forms of debt but also have some characteristics of stocks, are popular among banks as a way to boost their capital for regulatory purposes. Typically, these securities have no maturity date, but they can be redeemed, or called, in five or 10 years from the date they were issued.
Investor appetite for a type of debt
issued mostly by banks to boost their capital is showing early
signs of revival, just as interest rates on an estimated $120
billion of such securities are due to.