Lower Euribor floors could lure international crowd back to Schuldscheine

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By Silas Brown
07 Jan 2021

Several prominent Schuldschein arrangers believe the market must stop setting Euribor floors at 0% this year if it is to lure international borrowers back from the bond markets. If SSD arrangers can persuade investors to settle for lower minimums, corporate treasurers may find the SSD market a compelling alternative to bond markets once more, writes Silas Brown.

The 0% floors were first deployed as a quick fix to negative rates in 2016. German savings banks, the heart of the SSD investor base, needed to invest deposits but required reassurance they would not lose money if rates went negative.

“Investors in the Schuldschein market are primarily ...

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