Dexia launches liability management test for covered bonds, avoids crowded market
Dexia Municipal Agency launched an offer to exchange Eu14.5bn of obligations foncières into three new, longer dated benchmarks on Wednesday in the first test of such liability management exercises in the covered bond market, and one that could help it steer clear of a crowded funding calendar in the years ahead.
The exercise will allow Dexia to refinance redemptions that would otherwise be due between this year and March 2014. This should mitigate the need for it to come to the primary market during that period a move that could prove wise.
"What makes this a particularly prudent transaction
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