Pre-migration untagged articles

Uncertainty has led some issuers in the supranational and agency sector to widen their MTN levels more than they would usually in the first weeks of the year. Others are waiting for benchmarks to establish a pricing curve.

Brisk trading in commercial paper and improved market confidence resulted in peripheral sovereign, supranational and agency issuers posting tighter levels this week, helping to calm the euro-dollar basis swap. Dealers reported that investor sentiment had become more upbeat.

Systemic problems in the SSA market that have simmered away for years could be about to come to the boil and scald borrowers and banks in equal measure.

The Gulf Bond and Sukuk Association (GBSA) this week released what it claimed was the first detailed compendium of the nascent markets for local currency government-issued instruments in the Gulf region.

Dealers of private EMTNs: Non-syndicated deals for less than $250m excluding financial repackaged SPVs, self-led deals and issues with a term of less than 365 days

In what was a difficult week for SSA borrowers in money markets, year-end illiquidity sent the euro-dollar swap sharply tighter as SSAs raced to print before the end of the year. Sterling also proved a popular currency as central bank investors and issuers struck deals over an improved euro-sterling basis swap.

Despite regulatory support, the arrival of new names, almost €100bn of redemptions and banks’ increasing dependence as the senior debt market dwindles, supply of euro benchmark covered bonds is likely to fall next year, according to analysts.

The European Financial Stability Facility has refused to rule out issuing commercial paper, as dealers touted the instrument as a useful complement to the supranational’s inaugural bills auction. However, it plans to forge ahead with auctions for now.

FMS Wertmanagement has added certificates of deposit to its euro commercial paper programme in a move to broaden its investor base. Meanwhile, Sweden issued in dollars as it rolled over short term redemptions.

Korea Eximbank sold offshore renminbi notes, thanks to investor belief that the currency would stop appreciating. Meanwhile, agencies across Europe printed taps of syndicated deals as investors looked for the liquidity of public trades.

Dealers of private EMTNs: Non-syndicated deals for less than $250m excluding financial repackaged SPVs, self-led deals and issues with a term of less than 365 days

The European Financial Stability Facility is to brave the risk of failed offerings by starting to auction short term bills as early as next week.