IA takes aim at bond market transparency failings with new guidelines

Exchange and offer processes

The Investment Association (IA) is attempting to improve transparency and fairness in bond markets during exchange and tender offers - the process whereby an issuer exchanges its existing bonds for new bond issuance or buys them back for cash - via the publication of a series of best practice guidelines.

Exchange and offer processes, according to the IA, are hindered by a "general lack of transparency as to the rationale, process and outcome of such transactions", which potentially leaves investors with insufficient information to allow them to reach a sound investment decision. IA to name and shame firms facing revolts over executive pay The IA also said the processes employ "overly short timescales" in which to assess offers, as well as "linked resolutions" that pressurise investors to support aspects of proposals they would not otherwise support. In addition, bondholders who do ...