In February 2010 London Stock Exchange introduced the Order book for Retail Bonds (ORB) in response to growing private investor demand for greater accessibility to fixed income securities. This order-driven trading service offers access to a number of gilts, supranational and corporate bonds and has been developed in response to strong demand from retail investors for access to an on-screen secondary market in fixed income securities. The ORB is the first electronic retail bond order book allowing private investors to buy and sell bonds as easily as they would trade shares. This new market model provides issuers the opportunity to raise capital and admit their retail bonds to a transparent, regulated market.
Through issuing retail bonds onto ORB, issuers are able to tap into a new source of funding or diversify into a new pool of retail liquidity. A retail bond can either be an alternative source of funding or a complement to existing channels of private placement, bank lending and the wholesale debt capital markets. With the ability to raise less than £100m, the retail bond market creates an opportunity for issuers who may previously have been locked out of the wholesale bond market to borrow on a smaller scale. It also attracts investment grade issuers keen on an alternative to the US dollar private placement market.
The ORB offers greater flexibility for issuers as the size of a retail bond can be tailored to meet issuers’ particular needs; issue sizes on the ORB have ranged from £20 million to £300million. This can be beneficial to issuers who do not necessarily need a benchmark wholesale bond of £500m. Issuers have the option of issuing in smaller sizes on a more frequent basis, with Tesco Bank, Places for People and Provident Financial all repeat issuers.
Retail bonds have been characterised by simple structures; however we have seen fixed, floating and index-linked bonds issued onto the market. As the market develops further diversification in bond structures and seniority should follow. A common characteristic of all retail bonds listed on ORB is that they have trading denominations of under £1,000. The majority of ORB dedicated issues have been in £100 denominations with a minimum £2,000 upfront investment.
Regulators have made the need to transition away from the use of £-LIBOR as a benchmark clear Market participants with exposure to £-LIBOR must now be preparing comprehensive transition strategies to be ready for the phasing out of £-LIBOR LSEG remains committed to supporting our clients through this transition and offers a suite of products designed to assist market participants in their t
London Stock Exchange announces the establishment of the Sustainable Bond Market Advisory Group Advisory Group will act as a consultative body for London Stock Exchange on developments in sustainable finance Follows the recent expansion of London Stock Exchange’s sustainable finance offering including new companies eligible for Green Economy Mark and the launch of sustainability
We are pleased to share LSEG’s Quarterly Debt Capital Markets (DCM) update for Q2 2020. The update provides a review of global DCM activity and key highlights from London Stock Exchange, including how our markets are reacting to the impact of the Coronavirus (COVID-19) pandemic and how we can support your
Maximise your visibility on the newly enhanced londonstockexchange.com site
London Stock Exchange’s website has been enhanced to give it a fresh look and feel and to deliver a better user experience. We’ve created a new personal investing section and implemented enhanced data and search with dynamically updated market data pages, heatmaps and powerful price and instrument search filte