Scarcity drives demand for senior, as yield hunt makes longer better

By Nathan Collins
25 Sep 2014

Expectations of low supply in the remaining part of the year and a hunger for yield benefited FIG issuers this week. Barclays, Credit Suisse, Goldman Sachs and Morgan Stanley all received strong receptions for new senior prints.

All of the issuers opted for maturities of over seven years, offering higher yields for investors in the low interest rate environment.

“The area of the curve around seven years seems to work well,” said another syndicate manager. “It’s given a few issuers a chance to extend their curves ...

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