Business even better for SSAs

The SSA community is obtaining better funding costs in the dollar market than they have ever achieved even as the situation in financial markets deteriorates by the minute. In a slew of three year issuance, European Investment Bank issued $4bn of global debt at mid-swaps less 40bp, Denmark $1.5bn at less 37bp and Export Development Canada $1bn at less 40bp. For those swapping back to euros, the cost improves by around another 40bp to 45bp, which is why the Spain, Italy, Rentenbank and L-Bank are said to be looking closely at their dollar options. EIB was a blow-out with a book of over $5.5bn but Denmark attracted just $1.7bn of orders showing that track record of performance in this market is everything while EDC was barely covered being too tightly priced. And yes the euro market is also seeing some action. OeBB Infrastruktur has launched a Eu1bn three year at less 16bp and becomes the first benchmark issuer to tap the sector since September 11.