Double-A rated GlaxoSmithKline issued a Eu2.25bn five year bond and a Eu1.25bn 10 year yesterday. Credit Suisse, Deutsche Bank and Lehman Brothers garnered over Eu6bn of orders and proved that, contrary to some views, European investors are still willing to buy corporate bonds. But there is no guarantee this will lead to a revival of euro issuance before year end. Glaxo paid a 45bp premium over its credit default swaps on the five year, the type of premium few European issuers are expected to want to concede.
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