Barclays Capital and Pershing LLC have reached an agreement that will allow Barclays to distribute new-issue offerings it underwrites through Pershing, the firms announced earlier this week.
The deal will give Pershing’s nearly 900 U.S. broker-dealer and 500 independent registered investment adviser clients access to Barclays’ new-issue calendar. The agreement makes Barclays Pershings’ exclusive provider of negotiated offerings with retail order periods, although Barclays can also distribute other new issues through Pershing, Barclays executives said.
Pershing had previously provided primary distribution on a limited number of issues from some larger states, Pershing executives said. It also has a secondary trading operation.
Pershing said this will open up more new issues to its very wide variety of clients, many of whom may not have had access to these products before.
“We have a national need because [the clients] are all over the country, and this offers us an opportunity to offer a much broader array of new-issue product,” Pershing managing director Craig Messinger said.
The deal “enhances Barclays distribution capabilities for issuer clients,” Barclays managing director and head of municipal finance Jerry Rizzieri said. Pershing’s clients reach over five million investors across the country.
“Many regional dealers are focused in a certain sections of the country, whereas Pershing’s reach is national,” Barclays managing director Peter Coleman said. “As we have a national origination focus, I think Pershing matches well with us.”
Barclays Capital ranks sixth as a senior manager this year, working on 52 deals with a par value of $10.8 billion, according to Thomson Reuters. Last year it ranked sixth overall, working on 222 deals with a par value of $25.3 billion throughout the year.
Pershing, owned by Bank of New York Mellon Corp., offers clearing solutions and a number of other services to its clients.