SSAs ready borrowing increases but buyers duck market amid vol

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By Burhan Khadbai
19 Mar 2020

The European Central Bank threw the kitchen sink at the bond market this week with its Pandemic Emergency Purchase Programme (PEPP). Borrowers are assessing their funding programmes, which will rise in response to the Covid-19 pandemic. But they are in no hurry to sell new issues, with investor appetite minimal in the secondary market.

The only benchmark-sized deal by Thursday evening came from the State of North Rhine Westphalia (Land NRW) when it tapped its April 2023s on Thursday — the day after the ECB announced additional stimulus — for an additional €1.3bn via JP Morgan.

The tap was priced with a spread ...

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