Concentration of gov’t security dealers falls in H1
Concentration on the market for Hungary’s primary government securities dealers fell back in the H1 of 2008 compared to the H2 of 2007, the government debt management center (ÁKK) told Econews on Tuesday.
Hungary’s five biggest primary securities dealers bought 64% of bonds offered at ÁKK auctions in H1 2008, down from 74% in H2 2007. Only primary dealers may buy bonds and discount T-bills at ÁKK auctions. The level of concentration also dropped in the case of discount T-bill auctions: the biggest five primary dealers bought 68% of bills in H1 2008, compared to 75% in H2 2007.
ÁKK sold Ft 830 billion of bonds, at nominal value, at auctions in H1 2008, 25% less than in H2 2007. During the same period, T-bill sales rose 6% to Ft 1,869 billion. The trends reflect an earlier announced change in ÁKK’s issue policy. After a lack of liquidity brought the securities market to a virtual halt in March, ÁKK decided to cut bond issues 25-30% from the original plan and raise its offering of T-bills.
Hungary’s biggest primary market bond dealer in H1 2008 was Citibank, followed by Raiffeisen Bank, OTP Bank, ING Bank and CIB Bank. In H2 2007, the list was very different: OTP Bank was at the top, followed by K&H Bank, ING, Erste and Deutsche Bank. There were eleven primary government securities dealers in Hungary in H1 2008, the same number as in H2 2007, though Raiffeisen Bank replaced Dresdner Bank. (MTI–Econews)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.