FIG better protected from headline risk ahead of Draghi and payrolls

By Tom Porter
04 Jul 2013

FIG spreads are much better placed to deal with the potential volatility from the central bank policy meetings and US employment data that close out this week, said bankers, now that the panic provoked by Ben Bernanke’s mention of QE-tapering has burnt the fast money off the market.

Bank paper proved its new-found resilience on Wednesday when it stood firm in the face of concerns over Portugal’s political and financial stability.

Portuguese banks’ senior debt was up to 130bp wider on Wednesday, with contagion knocking Italian and Spanish banks back 10bp-15bp. But the wider market was ...

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