Corporates take advantage of relentless rally

By Jon Hay
08 Jan 2014

Credit’s rally continues to astonish. When the iTraxx Europe Main index broke down through 90bp on October 15, it had not closed below 90bp for years. The rally already felt extreme. On Monday and Tuesday it closed at a staggering 69bp.

The move has not been lost on corporate issuers. Volkswagen, Europe’s biggest, was first off the mark on Tuesday with a €1.25bn 10 year at just 63bp over mid-swaps.

Bigger deals are coming. Enel is set to launch round two of its €5bn hybrid capital programme with a ...

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