Zurich reopens euro callable market

Zurich Finance priced the first euro callable transaction for about a year this week, a Eu425m 30 year non call 10 via Calyon, Citi and JPMorgan. Although the structure had fallen out of favour due to extension risk, investors could not get enough of this issue. The deal attracted a Eu3bn book and priced at 390bp over mid-swaps, well inside the first price indications of 425bp over. What’s more, the issuer achieved a level a mere 40bp back of where it printed a six and a half year senior in April. To find out whether the deal paves the way for more callable transactions, read EuroWeek on Friday.