Positive basis swap may not be enough to lure issuers to crowded euro mart

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By Lewis McLellan
14 Aug 2020

The euro/dollar cross-currency basis swap has moved back in favour of euro issuance for the first time in three months, but with a wall of euro supply looming, the favourable level may not be enough to entice issuers away from the dollar market.

“The basis swap has moved in favour of euro funding,” said an SSA syndicate banker. “We’re still 4bp-5bp away from when euros was at its most attractive when World Bank was active back in April, but the conditions are better than they have been for a couple of ...

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