In a meeting held on July 29, 2019, the SEC's Fixed Income Market Structure Advisory Committee ("FIMSAC") unanimously approved its Corporate Bond Transparency Subcommittee's ("Subcommittee") preliminary recommendation regarding investor education concerning secondary market liquidity in the corporate bond market for retail notes ("Recommendation"). Mihir Worah, the Subcomittee chair, identified some characteristics that make retail notes attractive to retail investors, including the regular weekly issuances priced at par, yield enhancement features with embedded calls, and the survivor's option. However, he also pointed out the significantly higher turnover and transaction costs as concerns. The now-approved Recommendation underscores the significance of investor education regarding the liquidity, risks, rewards and objectives of fixed income products.
Originally published in REVERSEinquiries: Volume 2, Issue
8.
Click here to read the articles in this latest edition.
Visit us at mayerbrown.com
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2019. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.