Analysis-Three years after DirectBooks, US bond market still phoning it in

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Spice Up Your Life with Homemade Pumpkin Spice: No Bake Pie | SaltWire #shortsvideo #cookingshorts - 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.

"But, we have great momentum and have made material improvements to the primary markets workflow," he added. Sales teams at banks still reach out multiple times in a day through phones, Bloomberg chat messages or email to investors for their orders and amendments on every new bond offering throughout the course of a deal, said four syndicate banking sources.

In contrast, DirectBooks, when fully operational, aims to enable investors to communicate directly to underwriters through its system, making the process more efficient for investors and banks. Though DirectBooks has full functionality, widespread adoption is taking time because of structural hurdles - banks had different levels of tech spend, appetite for risk and speed of change, sophistication, prioritization, and tech dependencies, said Kerschner.

"Given the incentives of one network versus another, we view collaboration between vendors aiming to create a more connected ecosystem as something that market participants are asking for," he said.

 

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