The FCA has outlined how retail investors can be re-introduced into the UK bond markets. Earlier today the FCA released its consultation paper containing a number of recommendations designed to make it easier for issuers to issue corporate bonds with low denominations.
We welcome and agree with the recommendations. In our latest white paper, 'Retail inclusion in the UK bond markets: Sizing the opportunity', Michael Smith discusses how the opportunity for retail investors is access to a large and varied pool of bonds that ought to develop over time. For issuers, the opportunity includes broader distribution and additional touch-points with investors. Greater diversification of the investor-base both in the primary and secondary markets, over time, ought to influence new issue pricing.
To read the full white paper, follow this link.
If you would like to discuss the white paper or topic in more details, please contact: Michael Smith, CFA, Debt Capital Markets at Winterflood Securities.