There has been little reason for a covered warrant market to develop in the US given the large and liquid listed options market. Nor have non-covered warrants, issued directly by the companies on stocks, ever been a big consideration for investors or borrowers.
But the sale of bank warrants by the US Treasury is spurring an interest in a US warrant market, say participants. Banks that received Tarp support had to provide the government with warrants. The Treasury has been selling them back to the banks or holding auctions of the warrants since last December. Around $3.2 billion in Tarp recipient bank warrants have been...
