Sterling renaissance could mark strategic shift in funding teams
With dollar funding again stymied, a banner performance in sterling underscored the UK currency’s increasingly strategic appeal to bond issuers, some bankers argued this week — highlighting a rise of almost £1bn in new issues compared with the same period last year. But others see little more than an opportunistic grab at basis swap arbitrage.
As well as a blow-out for the UK Debt Management Office (see separate story), a barrage of rare names brought sterling deals this week and more could follow. Issuers enjoyed strong receptions, whereas volatility in emerging markets, an FOMC meeting and the coming Chinese New Year holiday stifled