Boom in Fintech Bond Sale Platforms Risks Fragmenting Market
- New digital systems starting up from New York to Hong Kong
- Investors warn that too many systems could split market
Photographer: Scott Eells/Bloomberg
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Bond buyers and sellers are warning that a recent proliferation of fintech platforms seeking to modernize debt sales around the world risks backfiring, making it more difficult to price deals.
The concerns follow a flurry of new technologies from New York to Hong Kong trying to drag the process of placing bonds into the 21st century. There are now at least 35 different systems for new bond deals across the globe, up from 22 in 2018, according to data from the International Capital Market Association.