Premiums are key if investors are to remain engaged in corporate bonds

The statement that value is what someone is willing to pay has proven true in the corporate bond market in the last week. Large multi-tranche deals paid lower new issue premiums than smaller deals that came later in the week, while one deal failed to find that value point altogether. And then a €2.9bn four-tranche jumbo deal attracted a €4.35bn book, albeit with healthy premiums on all tranches.