Opening UK Treasury Bills to retail investors has introduced £125 million of investor capital into the market, according to PrimaryBid.
The capital markets technology platform launched its Retail Eligible Debt Capital Market Service earlier this year, working with AJ Bell, Hargreaves Lansdown and interactive investors to enable retail access to UK government bonds. This has created a more than 3 million-strong investor base with over £300 billion in assets under management, according to the company.
Interest in UK Treasury Bills is high, the firm said, providing a lower-risk investment with stable returns amid higher interest rates. Individual investments have varied from £1,000 to more than £10,000, with many adding UK T Bills to Self-invested personal pensions (SIPPs), individual savings accounts (ISAs) and Lifetime ISAs.
Currently, just 1% of regulated UK corporate debt issuance is accessible to individual and wealth management investors. The FCA is reviewing rules around investor access to corporate debt early next year, hoping to increase engagement in line with other jurisdictions.
Stacey Parsons, head of fixed income at PrimaryBid, commented: “It is crucial that UK investors can access investment returns on equal terms to institutional investors. Our success in unlocking £125 million of new retail capital demonstrates how technology, education, and collaboration can modernise traditional and legacy capital market practices.”
PrimaryBid advocated for greater retail engagement in fixed income markets earlier this year, with the publication of its ‘Returning Retail to UK Debt Capital Markets’ report developed in collaboration with MUFG Pension & Market Services, London Stock Exchange Issuer Services and Simmons & Simmons.
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