BlackRock Weighs Merits of Standardized Corporate Bond Issues

BlackRock Weighs Merits of Standardized Corporate Bond Issues

BlackRock Inc. BLK +2.28%, anticipating a logjam in the corporate bond market as interest rates rise, is proposing a solution to lower trading volumes: having borrowers issue more-uniform deals.

Standardization in the $5.5 trillion U.S. investment-grade corporate bond market “looks unavoidable in the long run,” the asset manager said in a paper released Monday by the BlackRock Investment Institute, referring to the growing divide between how new and older bonds trade.

Interest rates remain near historic lows, but many investors have begun to worry that they will creep higher if the economy shows sustained improvement and central bankers wind down their post-crisis stimulus measures.

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