A new electronic platform for private placements launched this week has interest from 17 dealers and 18 issuers, according to the initiative’s chief executive Pieter van Dyck.
Italy has sold a 30 year private placement with a coupon linked to the European consumer price index. Market participants are speculating that the deal indicates confidence that inflation may begin to rise.
The low interest rate environment is causing investors to look at longer and longer paper in search of yield. Issuers are seizing the chance for long funding with private placements.
Belgium is set to bring a private dabbling in ultra-long debt issuance into the public sphere, as it mandated on Wednesday for a debut 50 year euro benchmark a week after placing its second 100 year medium term note.
Issuers are meeting investors' yield demands by printing long end private placements. One German state sold its longest ever bond on Tuesday and more sub-sovereigns from the country are likely to follow, according to market participants
The volume of public sector MTN issuance plunged 39% year on year in 2016’s first quarter, according to a Dealogic report. Europe's yield environment is partly to blame for the drop, say market participants.
Ireland has become the latest issuer to join the exclusive club of century bond issuers, after printing a 100-year note via private placement, the country’s National Treasury Management Agency said on Wednesday.
Three large Brazilian real denominated MTNs issued by Export-Import Bank of Korea (KEXIM) indicate that Brazilian investors are making a tax play, according to bankers.