Riksbank liquidity lockup stops Kommuninvest benchmark
Kommuninvest i Sverige, the Swedish municipal finance agency, was this week forced to postpone its debut Swedish krona benchmarks in the wake of market volatility. Sveriges Riksbank, the central bank, allowed the last of its special liquidity measures — fixed interest loans to the banks, made in 2009 — to expire at the beginning of the month and raised its repo rate by 25bp to 1% on Tuesday, causing uncertain market conditions.
Kommuninvest has been preparing to launch a Swedish krona benchmark for the past year because of increased funding demands. A debut benchmark will allow the agency to issue further liquid Swedish krona deals.
It has been roadshowing since early October, and had planned to launch a two year
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