BondAuction has expanded its platform capabilities to cover liability management.
“If an issuer would like to buy back its bonds, it can announce that to the market via an underwriter or underwriters and then investors are invited to submit an offer,” explained Spencer Maclean, BondAuction founder.
Issuers can then see which bonds are available to be bought back, and at what prices. This allows faster and more informed decisions on tender terms to be made, the company said.
“There are three types of users on the platform: issuers/buyers-back of debt, underwriters (banks) and the buy side investors. The response from all of these groups on the new functionality was positive. They like how clear the platform is, how it operates and what those outcomes can be. All parties recognise that they’re gaining something from this process.”
Once the landscape is clear, offers are accepted on a best-price basis.
“In the public book building process, most information simply says ‘reoffer’. It doesn’t actually contain any pricing data, so it’s very difficult to be scientific in an explanation of an outcome,” Maclean explained.
BondAuction aims to complement rather than replace existing processes, with Maclean recognising the importance of bank-to-client relationships.
“Conversations on where a deal should be marketed, on a spread basis or a yield basis, what size should you market – those still exist,” he affirmed. “We bring some science to the art and provide an instantaneous delivery of potential offer scenarios.”
©Markets Media Europe 2025
