End of the dollar bull market? Swedbank falters amid US credit volatility
European banks will exercise extreme caution in dollars after an ill-fated senior deal from Swedbank this week. It could signal the end of a long run of ultra-easy borrowing conditions in US credit markets, with severe volatility stemming from fears of rising interest rates. Tyler Davies reports.
Swedbank had set out to issue a three year preferred senior note alongside a six year non-call five bond in non-preferred senior format.
But it massively misjudged the tone of the dollar market on Tuesday, as many investors scoffed at the 144A transaction.The issuer ended up pulling ...