Winterflood featured in Treasury Mastermind article - ‘UK Bond Market Reform Set to Unlock Growth’. The article discusses the UK government’s reform of the bond market and its implications for corporate treasurers, investors, and issuers.
Commenting on the reform, Michael Smith, Head of Debt Capital Markets at Winterflood Securities said: “Low denominations will also have a positive impact on the secondary market. Tax considerations incentivise retail investors, more than institutions, to purchase bonds when prices are below par, providing helpful demand to the market. This could narrow spreads, which will be reflected in primary market pricing. For issuers less well known to retail, the secondary market might also be how they choose to include a retail investor base – issuing to institutions in the primary market, knowing that retail investors can access the bond (and provide liquidity) in the secondary market.”
If you would like to discuss the article or topic in more detail, please contact: Michael Smith, CFA, Debt Capital Markets at Winterflood Securities
