Investors demand crazy rich NIPs as SSA market reopens

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By Burhan Khadbai
24 Mar 2020

The primary public sector bond market came back to life on Tuesday as a pair of sovereigns and the European Investment Bank sold deals alongside German states. But it was far from a case of picking up where they left off as borrowers were made to pay new issue premiums of up to 20bp versus the secondary market levels on screens.

“Volatility has been so high and the levels have widened resulting in very significant new issue premiums,” said a head of SSA debt capital markets away from the day's deals.

Spain led the charge in euros with a €10bn seven year at a spread of 18bp over the ...

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