Spanish bail-in, Part I: speculation hangs over senior FIG debt
The senior unsecured FIG market appeared revitalised on Monday as Spain’s €100bn banking sector bail-out provided issuers with the window they had been looking for to break a 10 week hiatus in benchmark sized, fixed rate supply in euros. But concerns arose over how Spain would pay the bill for the rescue package, with some concerned that senior FIG creditors could be bailed in.
Buoyed by news of the Spanish rescue, investors brushed aside concerns over the lack of detail on the how the bail-out would work to pile into new issues from Svenska Handelsbanken and Swedbank.
Bankers were not surprised to see the market re-opened by strong Nordic names, pointing out that
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