The International Finance Corp revised its plans of a 10 year maturity for its debut $1bn global this week, preferring to stick to five years and venture no further along the curve. Given the volatility in US markets, many observers thought this wise. Treasury officials at the IFC said the distress suffered by agencies had been crucial to the decision to go ahead. After Gary Gensler's comments last week, and Phil Gramm's announcement this week that Senate hearings on the status of agencies would be held this summer, capital has been exiting agency product rapidly. The major beneficiaries have been supranationals, and IFC's $1bn five year note also profited .
March 31, 2000