Rates volatility sparks structured sales
The sell-off in global government bonds may have temporarily shut the public bond markets but some structured note investors have interpreted the spike in yields as a sign to buy. Société Générale, for instance, priced a Eu120m CMS spread range accrual during very volatile market conditions on Monday, while Asian investors piled in to classic Libor range accruals as headline coupons closed in on the 10% mark. Dealers have also reported sustained demand for puttables, inflation and vanilla lower tier two trades this week. Read EuroWeek on Friday for all the latest MTN news and commentary.
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