Low rates point to autumn of long dated deals for IG issuers

Euro debt 230x150
By Richard Metcalf
20 Aug 2014

The iTraxx Europe credit default swap index tightened again this week, returning to the 60bp mark after widening to 74bp as a result of geopolitical tensions earlier in August. With 10 year euro rates also falling, investment grade borrowers might be better able to print long dated deals when market activity picks up in September.

Bankers said they expected corporate bond spreads to stay at the low levels of July for the first post-summer European corporate issues.

"At this stage, I'm still quite constructive on credit," said one banker.

The 10 year euro swap rate has fallen from around 1.44% at the end of June ...

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