New conditions call for greater flexibility

Ever since it became clear that the Federal Reserve was in no mood to continue its quantitative easing programme ad infinitum, the markets have been on the back foot. Thursday’s reprieve came thanks to a downward revision of US growth. But that data is historical and might not warrant a change in the Fed’s stance. Though issuers were right to spot the opportunity and jump in with deals, the spurt of activity lacked co-ordination and smacked of desperation. If the primary market is to remain open, issuers need to be more flexible on timing and tenor.