Waiting for trouble
For much of the last year, financial institution borrowers had a simple task: see issuance window, jump through it. Now, they are faced with a dilemma: raise funds now, in case the market has a relapse, or hold out in the expectation that spreads will continue to rally.
The improvement in banks spreads in the last few weeks has been nothing short of phenomenal and unlike previous rallies in which investors benefited from higher new issue premia issuers this time have been able to price transactions tighter.
Take, for instance, the five year government
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