Buy-side

Abbreviation for buy-side firm.

For example, a buy-side participant in the bond market is a buyer of - or investor in - a bond.

Serious concern over LIBOR-referencing bonds

"As investors on behalf of savers and institutions in the UK and beyond, investment managers have a keen interest in encouraging active transition away from LIBOR by issuers of LIBOR-linked instruments.

Regulators around the world have made it clear that from the end of 2021 LIBOR will be phased out and that it is on all of us, as market participants, to ensure that this is achieved.

However, with less than 6 months to go, there still remains a large number of outstanding LIBOR-referencing bonds which have not yet transitioned to a new rate.

This is a matter of serious concern not only for the buy-side but also the financial industry more widely."

Hugo Gordon, Policy Specialist, Capital Markets, from The Investment Association - ACT guest blog - 15 July 2021

Taking another example, a 'buy-side' firm might buy derivative financial instruments for hedging purposes.

See also

• Bond
• Buy-side firm
• Capital market
• Derivative instrument
• Hedging
• Issuer
• LIBOR
• Sell-side firm
• The Investment Association
• Transition