Issuers must adapt to new reality of funding costs, say bankers
With no end to the senior unsecured funding drought in sight, bankers on Tuesday said issuers needed to face up to wider spreads and higher new issue premiums for primary issuance. The Eurozone debt crisis has stifled activity in the bank funding market and deals are thin on the ground — only three new issues have been priced since the first week of June.
People need to get used to this new reality and convince investors to start putting risk on the table again, said one syndicate banker. Investors still have funds coming in and they need to put that money down somewhere.
One syndicate head said the market needed to put spreads
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