JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. are working together to develop a new platform for bond issuances that aims to cut costs by improving communication between underwriters and asset managers in debt transactions, the Financial Times reported.
The product being developed will allow underwriters to send investors bond documents, credit rating reports, as well as share pricing information. The program will also, ultimately, allow underwriters to collect indications of interest and firm orders for bond sales, according to the March 25 news article.
JPMorgan, BofA and Citigroup have reportedly yet to finalize the format of the new platform, but they are weighing an online-based application, the newspaper reported. The banks are considering a program that investors can install on their computer, or one fused through an application into current asset manager order management systems, the report added.
The three big banks have invited other underwriters to join the project, which they expect to launch later in 2018 in the $6 trillion U.S. investment-grade corporate bond market. Subsequently, the trio intends to go global with it and also introduce it to other credit and debt markets, the Financial Times reported.