The European Commission, based in Brussels, Belgium, will consult on how to better the workings of the corporate debt market. Photo: lecocq/epa-efe/rex/shutterstock/EPA/ShutterstockThe European Commission wants answers to an intriguing question: Why is it becoming harder for people to trade corporate bonds, even though companies are issuing more of them? The commission—the executive arm of the European Union—plans to launch a public consultation in early 2018 on ways to improve how the corporate bond market functions. Since the financial crisis, banks and investors have complained about deteriorating trading conditions in corporate debt markets, making it harder to buy and sell bonds in large sizes. Most analysts say that is because banks now hold fewer bonds as a result of the regulation that followed the financial crisis.

Source: Wall Street Journal November 24, 2017 05:26 UTC