Vodafone raids US mart for 15 year arbitrage hit
Telecoms company Vodafone joined a growing crowd of Libor-based issuers taking advantage of arbitrage opportunities in the dollar market by issuing a $500m 15 year fixed rate bond yesterday (Thursday).
Led by Lehman Brothers and HSBC, the deal is the biggest 15 year
issue by a non-financial borrower, and once swapped into floating
rate, shaved about 10bp off the swapped cost of funds Vodafone
could have obtained with a 10 year fixed rate issue.
"Demand for incremental coupon in this low rate
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