Financial Times FT.com

Dialogue urged between bond underwriters and credit derivative community

By Michael Mackenzie in New York

Published: November 2 2006 21:11 | Last updated: November 2 2006 21:11

Andrew Feldstein, chief executive of BlueMountain Capital, thinks that the main message of recent months is that the bond underwriting industry needs to accommodate the increasingly influential world of credit default swaps.

“The industry needs to reach some workable accommodation for underwriters to communicate with potential bond investors, including those in the CDS market, about structuring bond deals. A huge CDS investor base is not currently incorporated into the process of debt underwriting,” he says.

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