Size doesn’t matter: small trades take over FIG market
Small transactions reached big audiences in the financial institutions bond market this week, as investors realised they would need to consider buying sub-benchmark supply in order to make the most of a dwindling deal pipeline. Tyler Davies and Frank Jackman report.
Five of the nine new bank bonds priced this week were smaller than €500m, which is typically considered to be the benchmark size for issuance in euros.
By rights, these transactions should have appealed to a more limited set of investors through falling short of the benchmark....