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Tight price and strong book reported as market awaits geographic breakdown
Bankers join on two continents as bank seeks to grow in public sector bonds
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Banks could rush to issue as fast as possible, taking advantage of remarkably tight spreads
Growing pipeline and fiercer competition had threatened to shake the darling bonds of May
Uncertainty in Middle East peace negotiations may reignite alarm, but investors remain willing as long as issuers pay to play
Tweaks to trading book rules will be next stage of competition
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Banks have enjoyed a hot funding streak in the sterling market in recent weeks, with pent up demand pushing supply towards its highest year in over a decade. Some market participants, however, are worried the superlative conditions might vanish just as quickly as they appeared.
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Rates traders were sanguine about the market outlook over the next month in the belief that low supply and high redemptions will support spreads. But long term questions about the extent of central bank asset purchases, both in the US and Europe, are expected to come back to haunt them.
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Greek banks are in their rudest health since the aftermath of the global financial crisis and are calling on capital markets investors to back them as they help the country rebuild its economy in the wake of Covid-19. With the banks able to access new sources of capital, propped up by the country's Hercules non-performing loan guarantee scheme, plenty of supply — and performance — could follow, report Tom Brown, Tyler Davies and Sam Kerr.
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