PHOENIX - At least one panel had a healthy discussion at Information Management Network ABS West 2005 conference held here last week, as participants talked the fairness and efficiency of the allocation process for asset-backed securities. The panel consisted of a mix of sell-side syndicate heads - of which there were six - two issuer representatives and an issuer advisor representative. The question of who syndicate desks are really serving, issuers or investors, ran throughout the discussion.
The discussion centered around whether or not investment banking syndicate desks are doing the right thing for the industry by blowing deals out fast to favored investor clients, potentially leaving yield on the table in the primary market, which is often realized in the secondary. Joseph Fichera, CEO of advisor Saber Partners compared the process to the rapid post-IPO price appreciation seen in the 1990s equity markets.