Corporate primary faces test in secondary spread behaviour
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, ...
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