Poland in Swissies after two year absence

By Jonathan Breen
11 Sep 2014

Poland made a rare visit to the Swiss franc market this week, printing a seven year bond — its first issue in the currency since 2012 — that offered no concession to its Swiss franc curve. Despite this, bankers are not preparing for a rush of sovereign, supranational or agency issuance in the currency in the coming weeks as issuers can fund at very attractive levels in euros and moves in the euro/Swiss franc basis swap are stymieing issuance opportunities for euro-funders.

“The euro market is trading so tight that issuers can get levels they just can’t get in Swiss francs,” said a banker away from the deal in Zurich, who added that the euro/Swiss franc basis swap has moved by 4bp-6bp across the curve, making it more expensive for ...

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