Goodbody named primary dealer for Irish Government bonds

Goodbody Stockbrokers has been named as a primary deal for Irish Government bonds, the National Treasury Management Agency said on Monday.

The addition of Goodbody as a primary dealer “will add to the depth and liquidity of the market and further enhance the profile of Irish Government bonds for investors,” the State debt office said in an emailed statement.

Goodbody has been an active player in the bond market for some time. It’s naming as a primary dealer comes more than two years after the NTMA dropped rival Davy from the role over a separate scandal which saw a slew of top executives leave the business and the firm ultimately sold to Bank of Ireland.

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Primary dealers play a key role in debt auctions, bidding in the issuance of bonds and short-dated bills. They are also market makers in Irish Government bonds on the major electronic trading platforms. While they typically make little profit from handling regular auctions, primary dealers stand to make considerable amounts in fees in managing larger bond sales, known as syndicated bond deals. Including Goodbody, there are 15 primary dealers in the nation’s debt.

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The recognition “broadens our capability and overall debt capital markets offering for our domestic and international client base and is testament to the experience of our fixed income team,” Sinead Mahon, head of investment banking at Goodbody said in a separate statement. “It further enhances our position as a leading Irish investment firm and will support our ambitious growth plans,” she added.

“This recognition underpins Goodbody’s 150 year old commitment to Irish capital markets,” the broker said. “Goodbody looks forward to leveraging the firm’s award-winning research and exceptional distribution, enabling the fixed income team to offer additional financial solutions to corporate and institutional investors.”

Goodbody has widely been seen as a candidate for primary dealer status since the NTMA dropped Davy in March 2021. The broker hired Garret Grogan, a former head of global trading at Bank of Ireland and bonds specialist for Bank of Montreal, in December 2021 to become its head of fixed-income trading. It also tapped Bank of Ireland fixed-income products trader Thomas Duffy to become a senior trader around the same time, The Irish Times reported at the time.

For its part, Davy has begun rebuilding its bond desk after the 2021 clear out. The firm hired Jim Ryan as a director in October, while it reportedly poached Ryan McGrath from rival Cantor Fitzgerald earlier this year, where he had been head of fixed income.