The giant asset manager BlackRock is initiating an aggressive call for the overhaul of a bond market that sits at the center of the United States financial industry and many retirement portfolios.
The New York Times reports that BlackRock, one of the largest bondholders in the world, said in a paper released Monday afternoon that the market for trading corporate bonds was 'broken' in a way that hurts ordinary investors and companies borrowing through the market.
The push by BlackRock is the latest, and one of the most strongly worded, indications of concern about the state of the bond markets. Last week, Daniel M. Gallagher, a member of the Securities and Exchange Commission, said in a speech that 'it is clear that tough reforms are needed in the fixed-income markets.'
BlackRock is an influential voice on the issue because it is the largest asset manager in the world and holds more than $1.3 trillion of fixed-income investments for clients.
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