Romania, Lithuania print but pre-funding uncertain for others

By Francesca Young
23 Oct 2014

Romania and Lithuania priced euro-denominated bonds this week, prefunding for 2015. But emerging markets bankers said the lower European rates outlook could delay others planning issues in the currency. By contrast, dollar funding flows may be as strong as ever — despite the recent volatility as sovereigns try to lock in low rates before the market changes heart again on US growth outlook.

“Most of the CEE sovereigns haven’t made a decision yet about prefunding,” said one syndicate banker in London. “The outlook for European rates could make issuers more relaxed about financing, but equally the market has been volatile and many have fallen foul through complacency before.”

A DCM official ...

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