Wide swap spreads fuel white hot dollar mart

By Lewis McLellan
08 Apr 2021

The SSA dollar bond market sprang into life this week with a slew of impressive deals. With swap spreads yawning wider at the short end and a fairly flat curve to five years, borrowers could soon be issuing sub-Libor deals in the belly of the curve.

ADB got close, pulling off a $5bn five year trade at mid-swaps plus 2bp. In spite of it being the tightest spread to mid-swaps of a five year in 2021, it still paid a 4bp concession to comparables. Bankers away from the trade said estimating fair value was ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial