Reuters invests US$35 million in Internet mortgage marketplace
16 June 2000 | 3355 views | 0
Reuters (www.reuters.com) has invested US$35 million in Pedestal (www.pedestal.com), an Internet-based secondary mortgage marketplace operator. The company, based in Washington DC, manages an Internet business-to-business marketplace for the trading of secondary mortgage loans and mortgage related products in the US. Pedestal's other strategic partners are Deutsche Bank and Battery Ventures.
The alliance will enable Reuters to increase its penetration in the fixed income markets by extending its range of services, via the Internet, to one of the largest segments - the US Mortgage Backed Security (MBS) and Asset Backed Security (ABS) sectors. It will provide Reuters with direct access to Pedestal's clients and enable the group to sell Internet-based data and analytics products for the mortgage market.
Reuters and Pedestal expect to realise synergies from the exchange of market information, the cross-selling of products and connectivity to services provided by both parties.
Philip Wood, managing director business development, Reuters Trading Solutions, says: "This investment strengthens our position in the fixed income markets and is yet another example of Reuters seeking to make the financial markets work on the Internet. Pedestal is playing a leading role in the shift towards internet enabled secondary mortgage market trading. The combination of Pedestal's significant industry expertise with Reuters content, technology and global distribution creates a solid foundation to enable secondary mortgage market trading to work more efficiently and effectively on the Internet."