‘Horrible’ swap spreads to force supras into long grass

Faced with cripplingly tight swap spreads preventing issuance in their preferred three and five year tenors at one of the busiest times of the year for funding, supranational borrowers are having to tackle a funding conundrum as they find themselves frozen out of the dollar benchmark market and unable to reach their core investor base of central banks — despite being among the best-rated credits on the planet.