Corporate Bonds – e-Trading Channels
Mckinsey offers a view on e-Trading Channels and the need to drive business away from voice. Only buzzword missing from the below sentence is Single Dealer Platform (SDP):
banks should provide incentives that reward sales reps for shifting uneconomical trades and clients from voice to e-trading channels. Motivating the right sales behavior will free reps to deliver more valuable services, such as exploring the needs of clients, generating trading ideas, providing market commentary (or “color”), and offering counsel on complex trades. However, banks will need to attract, cultivate, and retain a new breed of sales talent, with the skills to meet the demands of a new era far removed from the old one, in which dealer inventory largely drove the sales function.
The above also sound like there is a need to re-assess the “sales credit” scheme used by banks to reward sales reps.
One could also read in IBOR to the Asset Manager call-outs, especially around making incorrect investment decisions off inaccurate data:
Buy-siders ought to consider a couple of moves. First, they should reassess their investment decision-making process.