New York-based investment banking firm CastleOak Securities, L.P., today launched DirectPool™ platform which caters to investors electronically trading U.S. corporate bonds, as the market seeks liquidity amid a pullback from the biggest dealers of the debt.
Founded in 2006, CastleOak is a boutique investment bank focused on the capital markets, serving a broad array of corporate, governmental and institutional investor clients. CastleOak specializes in primary and secondary sales and trading of fixed income, equity and money market securities.
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The company has partnered with Bloomberg to launch DirectPool™ in a bid to provide its clients with top-tier trade execution after big banks warned that they may no longer act as market makers and step in to buy when investors sell.
According to David R. Jones, President and CEO of CastleOak Securities: “Since its late-September launch, over 40 institutional clients and 27 sell-side dealers have traded with CastleOak Securities through DirectPool™. Volume levels have steadily increased with $3+ billion of investment grade corporate inquiry and nearly $1.5bn in trades completed.”
“Through the DirectPool™ platform, we are cost-effectively connecting price-makers and price-takers, maximizing the best price and minimizing leakage of information,” added Thomas Thees, Head of DirectPool™ and Head of Fixed Income for CastleOak.
Philip J. Cenatiempo, Head of Global Markets at Bloomberg, commented: “We are pleased to provide clients with access to the depth of liquidity available via CastleOak on the Bloomberg professional service. As trading of corporate bonds increasingly takes place electronically, there is steady demand for innovative options for discreet sourcing of liquidity.”