Issuers face big premia to re-open market
French covered bonds widened this week following concerns that the sovereign could lose its triple-A rating. Meanwhile, traders reported buying in Spanish and Italian covered bonds as investors moved out of government paper, while core issuers faced up to paying wider new issue premiums.
In the primary market issuers face new issue premiums of up to 20bp, said syndicate bankers, and Wednesdays successful KfW trade (see Public Sector Borrowers) has made issuance no less daunting.
One syndicate banker said that while KfWs trade was well received, it was premature to suggest this had
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