Corporate bonds on fire as mandos, hybrids, seniors fly

Coal burning
By Jon Hay
06 Mar 2019

Europe’s corporate bond market is on classic form, swallowing six-tranche monster deals, hybrid issues paired with senior and other juicy trades day after day. Vodafone’s £3.4bn mandatorily convertible bond grabbed the attention on Tuesday with coupons that looked astonishingly low for sub debt, but behind it all is a rally caused by, of all things, economic uncertainty.

“We’re seeing a definite recovery in assets and a lot of issuance, driven by a relatively stable macro picture,” said a credit investor in London. But on closer examination, what he meant by relatively stable was monetary policy.

“The PMI data and leading indicators do suggest a soft ...

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