Investors suck up 0% coupon to buy short-dated ESM deal

By Tessa Wilkie
23 Oct 2014

More borrowers could follow a ground breaking deal from the European Stability Mechanism this week — a two year deal that is understood to be the first ever 0% coupon on a benchmark from a supranational or agency borrower.

The deal may not be the last to sport a zero coupon, said one head of SSA syndicate away from the mandate: “It’s better to buy this than to leave your money at minus 20bp at the ECB, which is the alternative. It’s safe paper, with a little ...

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