SSAs must pay to play despite ideal conditions

Draghi
By Tessa Wilkie
08 May 2014

Low supply in April plus an expected rates cut from the European Central Bank next month should have investors gagging for sovereign, supranational and agency paper in euros at any price offered. But as borrowers demonstrated this week, successful deals will be those that offer something in terms of pricing or maturity, as buyers look to pick up yield or spread in an ultra-low rates environment, writes Tessa Wilkie.

The ECB on Thursday said that it was comfortable about acting next month. Analysts expect that action to be a cut in the refinancing and deposit rates.

“The ECB said don’t rule anything out in June and that led to a decent rally in the periphery on ...

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