TradeRisks is actively involved in raising capital markets debt in both public and private markets. This includes straight corporate bonds, project finance bonds and securitisations. Our team has significant capital markets experience and is able to offer clients advice and full transactional services including placement, execution and custody.
The lack of underwriting on the part of investment banks for primary bond issues combined with no liquidity in many parts of the secondary market has reduced their role to that of “matched brokers”. Matched brokers do not need capital, which means that more efficient providers have entered the market for this and other functions, which were formerly the preserve of investment banks. This provides borrowers with additional choice and competition and is a development which is congruent with moves by regulators to create new direct lending channels between end investors and borrowers.
As such, sophisticated borrowers are increasingly willing to interface directly with institutional investors in the same way that they have previously done with bank lenders, a trend that is also supported by the authorities and investor community.
TradeRisks has an extensive track-record of developing new funding structures in the capital markets, driven by the specific circumstances of the issuer.
TradeRisks pioneered the process of privately placing public bonds in the long-dated Sterling bond market in 2012 with a Housing Association issue. We brought this approach to the Local Authority space in 2015 owing to the rapidly changing funding landscape within the sector, with the first such issuance being Warrington Borough Council’s CPI-linked bond. Accessing the market through such an approach is advisable over the traditional syndicated sales process which often produces poor results for non-frequent borrowers. This private approach maintains price tension whilst reducing execution risks for non-frequent borrowers.
Capital Markets buybacks / refinancing
TradeRisks is also actively involved in refinancing capital markets debt in both public and private markets.