Callable zeros return to MTNs after break
Callable zeros, a structure popular during the first three quarters of 2009 and the only structure to be regularly traded in the aftermath of the collapse of Lehman Brothers, disappeared from the market in the last months of 2009.
Some dealers stopped increasing their exposure to these notes, closing swap books for these trades.
But the notes made a return this week.
Municipality Finance issued a $50m callable zero coupon note via Barclays Capital, the first callable zero trade of the year, according to Dealogic data. The 30
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