Sub-benchmark deals pay no premium with demand sky high
Typically, sub-benchmark size deals have to pay a premium to compensate investors for a lack of liquidity. However, with levels of demand meaning all deals are multiple times oversubscribed, these smaller deals are pricing in line with their larger peers.
“There is just so much liquidity around right now,” said a syndicate manager involved in one of the sub-benchmark deals this week. “Particularly in the short end, issuers will get pricing just as tight as they would for offering investors liquidity with a larger deal.
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: firstname.lastname@example.org
To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: email@example.com or find out more online here.