Arkema pays for 10s while short dated FRNs extend run

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By Michael Turner
11 Apr 2017

Parts of the corporate bond primary market showed signs of strain on Tuesday with one rare issuer, Arkema, pricing a €700m 10 year trade with an 11bp premium over fair value — one of the largest premia for a vanilla corporate trade in recent weeks.

Bankers off the trade put this down to a mixture of the Baa2/BBB rated French chemical company Arkema being a tough sell and investors demanding higher premia after months of borrowers paying wafer thin concessions.

“Arkema is not hugely loved, so it’s a decent outcome ...

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