Investors flock to defensive BFCM pref five year

By Frank Jackman
31 Mar 2021

Investors poured into a five year senior preferred deal from Banque Fédérative du Crédit Mutuel on Monday, as accounts look for shorter defensive deals to hedge against rates volatility further along the curve.

“That was a heck of a trade,” said one banker away from the deal. “The interest rate volatility is causing quite a few asset management accounts to take a more careful approach.

“Buying a defensive product like a five year senior preferred trade is a nice hedge or ...

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