Secondary MTN market divides bankers

More traders
By Kathleen Gallagher
08 May 2014

The line between the private and public markets is growing slimmer as some medium term note dealers have started making secondary markets. But the development has divided participants as some bankers are unwilling to take part in this new part of the business, claiming it is against the traditional approach to MTNs.

Financial institutions and corporations have shown a preference for selling club private placements over public deals and several dealers are treating the bonds like quasi-benchmarks, trading them in the secondary market.

“As the popularity for club deals has surged it has become harder to draw the line between ...

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