“Theoretically, it’s a nice idea, but there is some risk,” said Professor Thomas Davis of the Bloustein School of Planning and Public Policy at Rutgers University. Davis has experience dealing with mini-bonds, but it’s not been positive.
Mini-bonds played a significant role in the demise of his former employer, Lehman Brothers, when each bond had to be marketed the old-fashioned way by going through big investment banks, which put up barriers to investment, such as trading fees ($50 for an equity trade, for instance).
The Hudson Reporter, July 12, 2017
