Europe
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◆ Wessex Water and Bunzl in sterling ◆ Manchester Airport and Mondi in euros ◆ Market shrugs off Friday’s weak non-farm payrolls number -
◆ ‘Exceptionally strong’ deal in tough market ◆ Rarity adds to appeal ◆ Danish krone benchmark could come next
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Core SSA spreads suffer as EU-level funding expected to jump, but concerns also loom over Bunds and other govvies
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Big orderbooks and zero average new issue concession paid belies chaos in rates market
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Some borrowers think the risks outweigh the benefits
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Market becomes harbour in geopolitical storm with borrowers tipped to set sail
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But low spreads on bonds posing stiff competition for loan market
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Issuer makes saving versus home currency and discovers ‘extraordinary’ real money demand
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Exceptional moves in rates could impact relative value across the FIG capital structure
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◆ German state braves extreme spread volatility ◆ Deal was priced after government signalled higher Bund and Länder supply ◆ ‘Flip side for investors’ is much higher yield
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EGBs sell off as Germany tries to fund both infrastructure and defence through debt brake reform
