SSAs slip into Libor-plus territory

The supranational and agency sector is suffering again this week — particularly in the dollar market — as the impact of government bail-outs of banks sinks in for investors. Recent deals from the Council of Europe and IADB have widened out against Libor as swaps spreads continue to tighten and most recent issuance is trading between Libor plus 2bp and less 10bp, effectively shutting the door on potential issuance. The euro market, while in slightly better shape, remains hard to navigate and bankers are eyeing up how the first bank guaranteed deals go. To find out how things are shaping up for public sector issuers, read EuroWeek on Friday.