Competition stiff at sovereign auctions despite supply glut

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By Lewis McLellan
30 Jun 2020

Banks are still heavily overbidding at sovereign auctions, in spite of a glut of supply, as they scramble to secure lucrative syndication mandates.

Overbidding at sovereign auctions to boost market share, and thus secure fee-paying syndications, is a well-established practice among primary dealers. Thanks to the coronavirus pandemic, governments have had to drastically increase their borrowing programmes and have added more syndications to their calendars to cope with the load.

But a head of ...

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