(Bloomberg) – On a good day, the improved credit market seems to be stuck in the 1990s, with transactions taking place over the phone and instant messaging.
Then there are days when your transaction lasts for weeks or more, and there are days when the 1970s or earlier feel like a fitting comparison.
For more than two decades in the 21st century, this important but slow-moving trade has been on the rise in the fight against blockchain and stock exchanges. However, there are initial indications that investors in mortgage lending, including the acquisition of MAN, which generates MAN, which generates MN 1.4 trillion, are open to the court.
A new survey from Coalition Greenwich Research Company says 80% of corporate lending investors in the United States have used technology to make their markets better and more efficient.
The question is whether that e-commerce will help to attract traffic. According to Coalition Greenwich, only 1% to 2% of secondary market credit is currently traded on electronic platforms. That compares with 37% for investment level bonds and 26% for high-yield debt.
“In the coming years, more and more e-commerce will be expected,” said Kevin McPartland, head of marketing at Coalition Greenwich. “The ruling class will be the driver.”
The epidemic is accelerating e-commerce in corporate bonds. But with improved loans, businesses are lagging behind. Incentives to trade with the lending agent to avoid non-uniform structures, slow settlement times and payments, almost all of the loan business is still done by phone and instant messaging.
For lenders, e-commerce has benefits. E-commerce improves transparency, allows users to quickly bid more than one trader, gather more information and view, and get more fluidity by allowing anyone to bid through all trades — one that anyone can trade with, for example, stocks.
According to Coalition Greenwich, there are currently only two platforms to trade loans electronically. MarketAxess Holdings Inc., a well-known bond market. Bank of America provides a single distribution platform to facilitate e-commerce.
A major obstacle to conducting transactions online is the lack of incentive for major market banks to change existing protocols. A.D. In 2020, a total of two-thirds of the total number of lenders invested with the first agent, according to Greenwich.
Returning to the original distributor to facilitate transactions can lead to better settlement times – the most popular in the credit market. Some banks, such as JPMorgan Chase & Co. , They earn a lot of money when they break their loan agreement with other banks.
‘Customers want this’
Finally, customers who buy from a bank, especially in other fixed income markets, may be forced to change course after seeing large-scale transactions in the last 18 months.
“The driver is really asking customers. Both in high production and in IGA.
Cohen is leading MarketAxess’s efforts to expand e-commerce. In the first half of ‘2021, the ‘MarketAxess’ loan rate increased by 96% compared to the first half of ‘2020, the spokesman said. The company does not specify the exact number of votes.
(Bloomberg News parent, Bloomberg LP, competes with MarketAxess to provide fixed income trading, data and information for the financial services industry.)
In addition to creating technical barriers to bringing a new market online, the challenge is to convince merchants who have done their job by picking up their phones.
“There is a bit of a challenge to get rid of the old school mindset of customers who need to shop, come and try e-commerce,” Coenne added. But he is very reasonable.
AT&T, the largest non-banking US corporate bond issuer, has reported more than $ 7 billion in free cash flow from Wall Street.
Delta lenders are ready to record the lowest weekly loans this week after fears of a volatile loan market on Monday. It expects to reduce its debt by more than $ 15 billion by the end of 2025. McLaren’s latest bond sales have reached at least $ 4 billion, as shareholders say the company will use a strong balance sheet and a strong brand image to turn it around. According to insiders, Endoc has been hired as a financial advisor to endorsement by endorsementists.
With 9. 9.09 billion in bonds, the European market is set to record its lowest weekly earnings of the year.
Italian bank Monte Day Pasichi de Sina has agreed to reduce its legal debt by 3.8 billion euros ($ 4.5 billion). Investors rushing to take a stake in Pizza Express have increased their share price by about 50% in one week. The chain of mid-market restaurants comes out of a dangerous reorganization
The fate of China Evergrand Group, the largest guarantor in the region, has plummeted in Asia.
The world’s largest debt maker is putting pressure on the founder of China’s Evergrag Group, a billionaire. According to 1 point traders. High-level notes lead to second-day profits
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