Back to the complete issue
Tuesday, 23 January 2018

Could digital platforms spell the end of sales teams in corporate bond issuances?

Could digital platforms spell the end of sales teams in corporate bond issuances? Digital platforms are breaking into the traditional cycle that goes into a corporate bond issuance and could potentially wipe out fleets of sales forces at banks, Katie Linsell writes for Bloomberg. Traditionally one of the most robust sources of revenue for the big banks, the system of bond issuances has been called into question for being biased towards large institutions. Digital platforms are increasingly being seen as circumventing this system by bypassing banking sales teams and connecting issuers directly with their investors via a digital platform. Digital platforms offer the added benefit of transparency and record keeping which regulators are increasingly demanding from banks and underwriters. While this shift may not pose an existential threat to traditional sales teams, it could see their revenues shrink, says Linsell.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.