Despite a recent rise in rates that has improved the outlook for SSA new issues, Bank Nederlandse Gemeenten’s Sfr100m tap of its 2.25% 2020 line on Wednesday puzzled bankers. Royal Bank of Scotland and Raiffeisen Bank closed the deal at mid-swaps flat, taking a line originally issued in 2005 to Sfr1.125bn.
"We scratched our heads when we looked at this trade," said a banker away from the deal. "Despite increasing rates, we are still seeing little demand for SSA paper at the long end of the curve and there is little SSA activity in the secondary market."
But a lead