Covestro, Schneider, Ardagh race through ECB-hyped market

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By Jon Hay
05 Jun 2020

Three European companies, one of them a high yield issuer, jumped into the corporate bond market on Friday, the first to test the waters after the European Central Bank's promise the previous day to top them up with another €600bn of liquidity through its Pandemic Emergency Purchase Programme (Pepp). They found overwhelming demand, leading to fast sales, an increase and deeply negative new issue premiums.

A banker on one of the deals said the strong tone had been there all week. "There was a big expectation; the ECB had dropped a big hint in in its April minutes and everybody was expecting an increase to the Pepp. Christine Lagarde did not disappoint, and ...

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