Tier two pair blow out as investors hunt for yield

By Nathan Collins
26 Jun 2014

Aviva and BPCE took advantage of a lack of subordinated supply to sell tier two deals on Thursday. The issuers were rewarded with bumper books at prices flat to or inside of fair value, shrugging off market weakness on Wednesday.

“It’s just further proof that yield is king,” said one syndicate banker. “Investors might be reluctant to buy at such tight spreads, but they can’t afford not to. You have to hit your yield targets and sub supply has been lacking recently.”

While the market was soft on ...

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