Bond issuance exploded as government debt offices and corporate treasurers ran to sure up their cash piles. The wave of issuance is frequently relying on longboat style technology. There are newer “boat” styles and manual rowing can be replaced with technology, plus a wider range of funders, by allowing retail investors to have a bite of the bonds being issued.
The process of issuing bonds is unbelievably slow and largely manual. we understand that is can take an average 30 stages with human intervention between multiple parties and intermediaries to issue a bond. The use of PDF and paper-based processes in issuance that are then carried into trading and settlement need to be improved. technology has improved the trading of currency and equities but the bond market appears to be in the dark ages.
The opportunity of digitalisation, fractionation to retail customers and automated workflow should be the way to ride the bond waves, not longboats. It does need Viking hardiness though as its not a simple task to undertake and a journey we’ve been on for many years.