FMS drops sterling levels as buyers clamour for paper
Rampant demand and a move in the euro/sterling basis swap has allowed FMS Wertmanagement to slash its sterling commercial paper levels. The move shows that SSA issuers are able to exploit both term and money markets in sterling to raise aggressively priced funding.
The German agency was posting sterling CP levels of three month Libor minus 9bp on Thursday morning, down sharply from quarterly Libor plus 5bp in mid-December.
"The market has more appetite to buy sterling commercial paper than last year," said Daniel Lakic, vice president in the treasury department
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