Secondary bank spreads widen amid coronavirus concern

By Frank Jackman
29 Oct 2020

Concerns over the worsening coronavirus infection rate in Europe sent bank spreads wider on Thursday, as investors avoided taking on risk in the secondary market.

“There’s not a lot of desire to add risk in secondary,” said one syndicate banker. “Some investors are looking for an exit and as there are not a lot of buyers out there.”

The pressure is being felt the most in longer dated, riskier bonds. “The longer end, ...

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