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Article: Secondary Market: Secondaries Soak Up Extra Cash Supply.
- Article from:
- Private Placement Letter
- Article date:
- February 14, 2000
- Author:
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While primary deal flow in last year's market was notably choppy, the secondary market was there to pick up some of the slack and provide investment opportunities for private placement buyers, Lehman Brothers says.
Overall, the secondary market enjoyed a fruitful year in 1999, as total investment in secondaries grew by about 15% over the previous year, raising the bar to an estimated $2.5 billion.
Scott Best, senior vice president and secondary bond trader at Lehman, said that international jitters, higher interest rates and volatile public spreads resulted in a sporadic, "stop-start" primary market unable to fully satisfy a number of buyers with cash to ...