Has that change harmed the ability of the capital markets to fulfil their function for issuers and investors?
In one way, Tregidgo argues, things may have altered for the better: in the development of market practices and deal structures that are not hostage to transient or idiosyncratic appetite for risk.
“But another way of looking at it is in terms of cost to the issuer,” he adds. “Did issuers believe that unbridled competition on risk appetite was a good way to keep costs down? Well, maybe there was a time, but we have seen consequences for market structure that definitely challenge that.”
Tregidgo might have finally left Credit Suisse, but he is as busy as ever. He spends much of his time now promoting financial inclusion as chair of the advisory council at the Center for Financial Inclusion at Accion and as senior adviser to the Blue Haven Initiative.