Senior unsecured market freezing up amid spread volatility
With current market conditions blocking primary issuance, secondary market activity is freezing up in senior unsecured as volatility in CDS and cash spreads makes valuation all but impossible, said bankers on Tuesday.
After a torrid opening, spreads contracted on the back of a smooth Italian auction, bolstered by rumours that the ECB was among the buyers. But syndicate bankers said the volatility was slowing secondary flows.
The problem is that valuation is impossible, said a FIG syndicate head. Bid-offer spreads are
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