Dividing lines show in senior as investors chase performance

25 Jan 2013

Fault lines began to show in the senior unsecured market this week as investors flocked to bond issues with glittering coupons from trickier borrowers, leaving much smaller subscription levels for deals from national champion names.

The trend echoed a phenomenon in the covered bond market, as investors chased performance amid low rates and spreads.

Banco Popolare and UniCredit Bank Austria put last year’s pulled deals behind them when they raised multiple subscription levels for new senior unsecured bonds this week. In contrast, global champions ...

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