VW’s 35bp marks new low for loan market despite raging crisis
A margin of just 35bp on a €5bn five year revolving credit for German auto firm Volkswagen this week could well mark the pricing bottom of the investment grade loan market, as the continuing debt crises in the US and across the eurozone take their toll on the sector.
The deal for A3/A- rated Volkswagen, led by Citi and Commerzbank, was almost twice oversubscribed by lenders desperate for a slice of the borrowers much-prized ancillary business despite what one banker called "unbelievable" pricing.
But bankers fear that lenders could start to decline some of the most
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