Investors chase yield in Volvo’s largest krona deal this year
Swedish investors, who mainly buy top-rated, low yielding names, snapped up Volvo Treasury’s largest Swedish krona deal of the year this week – a Skr2.85bn five year deal offering an eye-catching 5.175% reoffer yield on its fixed rate tranche.
Car firms often issue short dated FRNs to fund their consumer finance operations, whose leasing schemes have a similar format. But Volvo chose a longer tenor to reach a 5% coupon the key driver in this transaction.
That yield attracted retail investors, pension funds and asset managers, who
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