Warrants: After Tarp, is there a viable market?

Treasury bank warrants sales increase volumes; Will corporations begin to follow suit?

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.

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