Le Pen threat rattles French FIG and SSAs with OAT shock

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By Craig McGlashan
09 Feb 2017

The prospect of a far-right leader becoming president of France rocked government bond markets this week. It led to a rare pulled French agency deal and will cause the country’s banks problems with their own huge funding needs. But as other issuers in eurozone countries facing elections showed, the picture of the risks ahead is complicated. Craig McGlashan reports.

The worst of the OAT spread widening versus Bunds came on Monday afternoon and Tuesday, with the spread closing both days around 76-77bp — compared with 66.7bp at the end of last week.

That drove Agence Française de Développement to pull a no-grow $1bn Reg S only deal ...

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