KBN offers rare positive spread opportunity at short end
Investors lapped up a rare chance to buy triple-A rated fixed rate paper in size at the short end of the dollar curve on Wednesday when Kommunalbanken (KBN) brought a two year deal. Demand was rampant enough for the borrower to price through guidance in larger size than had been planned.
The result should prove encouraging to issuers able to offer a positive spread over mid-swaps although few were likely to follow KBNs lead, bankers said, with most of the agencys peers keener on achieving longer duration.
It was no surprise to see 73% of the $1.5bn Reg S/144A deal
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