Adding value to new bond issues is a relationship business

Deals have seen a lot of support from investors this year, giving a great start says Santino Bibbo, managing director of Cabrera Capital Markets. With around US$130 billion priced in investment grade US new issues over the past month, one new issue from retailer 7/Eleven being launched in Asia and being six times over subscribed by the time the deal reached the US that day, and US$6 billion of inflows into bond funds, the numbers support this.

Adding value to a deal requires his firm to reach out to the 400 investor accounts – including smaller firms by assets under management – and ensuring that the breadth of investors increases pricing and liquidity transparency in the deal. Strengthening relationships with large broker dealer firms and focusing on the capital structure of clients will be core to growth over the next 12 months, Bibbo explains.

Published on February 1, 2021

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