IG corporates make swift referendum recovery as investors eye year-end

Italy Wedding Cake 230x150
By Ross Lancaster
05 Dec 2016

Early morning volatility had largely retraced by mid-morning in investment grade euro corporate bonds on Monday, as market participants, for once this year, got the political result they expected from Sunday’s Italian referendum.

Most investors and traders have been pricing in a ‘no’ victory for much of the past month. A run of new issues from Italian utility companies that hit the primary market in mid-October had all widened by between 30bp-40bp over the last month, said one head of syndicate ...

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