SSA, covered borrowers left to sweat over French election

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By Lewis McLellan
02 Feb 2017

The race for the French presidency has put pressure on the country’s government bonds (OATs), prompting price moves which could have far-reaching consequences for both covered bond issuers and public sector borrowers. Lewis McLellan reports.

The sell-off in French government bonds is making rates products that traditionally offer a spread over OATs look unattractively expensive, particularly at the long end.

Crédit Mutuel’s eight year covered bond ended up raising only €750m of its €1bn target on Wednesday, and relied upon support from the ...

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