BlackRock's Prager on Bond vs. Equity Markets

The video discusses the differences between the bond and equity markets, highlighting the hybrid nature of the bond market due to its complexity. It addresses the current challenges in the bond market, particularly in the principal market, and the emerging role of the agency market. The video also explores the dynamics between the buy side and sell side, emphasizing their interdependence and the evolving nature of trading practices.

What is one reason the bond market is unlikely to fully adopt an equity market structure?

• The bond market has a myriad of cusips for the same company.

• The bond market has fewer participants.

• The bond market is homogeneous.

• The bond market is more transparent.

What is a major issue currently facing the bond market?

• Excessive transparency

• Lack of electronic trading

• Over-reliance on the equity market

• Plumbing issues in connecting buyers and sellers

Which market segment is emerging despite challenges in the bond market?

• Principal market

• Agency market

• Equity market

• Commodity market

Why did BlackRock not sign the mission statement for more transparency?

• They disagree with the statement.

• They have been discussing these issues for a long time.

• They were not invited to sign.

• They believe the market is already transparent enough.

How does the buy side view the sell side in the financial ecosystem?

• As regulators

• As irrelevant

• As critical partners

• As competitors