Corporate primary faces test in secondary spread behaviour

By Jon Hay
15 Jan 2020

European corporate bond specialists are keeping an eagle-like watch on how well new issues trade in the immediate aftermarket. Any widening could kick off a trend towards higher new issue premiums.

The present tight spreads are a worry for syndicate officials, after a sharp rally late last year prompted by European Central Bank bond buying largesse.

“The real test for spreads will be how deals perform,” said a head of syndicate. “A lot of them have traded around reoffer, ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial