Dollar strength draws bank supply away from euros
Unbeatable funding conditions are drawing European banks away from their home currencies and into the dollar market. Deal arrangers predict there will be no let-up in the shift to dollars over the near term, reports Tyler Davies, as issuers prepare for an unsettling fourth quarter.
Many European banks have over the last couple of months completed their 2020 issuance plans and made a head start on their borrowing programmes for next year.
Combined, they have sold about $19.1bn-equivalent of senior and subordinated bonds in euros since the start of August.But ...