FIG issuers to pay ‘coronavirus premium’ to access market post-earnings

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By David Freitas
27 Jan 2020

Syndicate bankers argue that financial institutions will need to pay a premium to access the bond market in the next couple of weeks, as investors fret about the potential impact of the outbreak of coronavirus in China.

Credit spreads initially opened on a firm footing on Monday morning, even as equity indices plunged more than 2% lower on the back of news reports about coronavirus.

But according to one syndicate banker, "the mood, which is vastly linked to the spread of the virus, made everything retreat".

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