How innovation shaped 50 years of capital markets
Here's a little list for you:
The emergence of the Eurobond market, the spread of convertible bonds, the introduction of floating rate notes, the institutionalisation of debt and equity markets, the gradual dominance of the corporate issuer, the adoption of market-based pricing of bond and share issues and the near-disappearance of hard underwriting, the breaking down of national borders in primary issuance, the development of leveraged finance and the attendant growth of high yield bonds, the transition of derivatives from their earliest hedging uses to products in their own right, the opportunities unlocked by securitisation, the ballooning of automated trading, the surge of passive investment, the explosion of private capital, or the still nascent technologies of cryptocurrencies and the distributed ledger of the blockchain
Sounds familiar? If you've been working in capital markets for as long as some of the folk I spoke to for the April capital markets issue of Euromoney's 50th anniversary celebrations, it should.
It's a litany of the product innovation that capital markets have seen over the course of the five decades that Euromoney magazine has been in business - much of which we spend our latest issue exploring.
We look back but also forward - at how the past informs the present and the ways in which the future might be mapped out.
It's a loooong read. But that's what weekends are for. Enjoy!
Read the full feature here
See all our 50th anniversary coverage here
Seed to IPO | P&L | Strategic Finance | Tech | Management | Investing | Leadership
5 年It would be interesting to analyse whether the incentives for innovation have changed at all, especially recently. For example, recent regulatory change could be a 'big bang' moment for the process element (reduction of secondary salesforces forcing innovation in how complex transactions are distributed and how investor engagement happens). Or the increase in expectations of issuers in getting information insights during the distribution aspect of their transactions, given they are used to good quality insights in every other aspect of their professional lives due to technology.
IPO, M&A and corporate finance project management | Board Member | Non-Executive Director | Corporate Finance | Business Strategy | International & Cross-border | Debt & Equity Financing | Fundraising
5 年Fascinating look back. I smiled at the opening lines “those same bankers often struggle to think of radical ways in which the actual method of executing much of capital markets activity has changed, certainly in recent decades”. Because I set up The Deal Team in 2016 SPECIFICALLY as the first professional transaction management provider for clients globally, to extract efficiencies and innovate the stale practices in M&A and ECM execution. Put simply? We create value by giving management teams back their time.
Global Investment Leader | CIO | Macro & Fixed Income | Hedge Fund & Alternative Credit Strategies
5 年Sounds familiar!