¿El Clásico? Spain's big 10yr shocks after losing €75bn of orders

By Burhan Khadbai
14 Jan 2021

A book of more than €55bn for a €10bn bond priced with a new issue premium of 1bp would be a gratifying outcome for any sovereign issuer. But Wednesday's syndication for Spain instead attracted robust criticism over price moves during bookbuilding which derailed what was on course to be the biggest order book in bond market history.

Much of what was lost was froth, claimed the bookrunners, and no market as distorted as the eurozone government bond market is — thanks to the ECB — can claim to be free of dysfunction when it comes to pricing and true levels of demand. But the sheer ...

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