Sovereigns, Supranationals and Agencies 2018
The recent swings in the sovereign, supranational and agency bond market due to political turmoil in Italy suggest issuers will have to change the way they execute deals in the coming months. Elsewhere, eyes are still trained on the European Central Bank’s tapering plans, while rising dollar yields are failing to attract SSA investors. Jasper Cox reports.
The withdrawal of quantitative easing and ultra-generous monetary policy in both the US and Europe has yet to produce any grave market upset. But it is still in its early stages, especially in Europe.
Some public sector borrowers want to see green bonds and the growing rainbow of social and sustainability deals regularly and reliably being priced more tightly than their conventional bonds. The ambition is to set an incentive that will spread through the market and encourage ethical spending. But some worry that setting the pricing bar higher for SRI bonds than vanilla as a matter of course could deter investors. Lewis McLellan reports.
The European Central Bank’s Public Sector Purchase Programme for buying eurozone government and SSA bonds, which has crushed yields and spreads since its inception, is reaching its end. GlobalCapital asked some of the top names in the European state agency bond market what the withdrawal of ECB support means, not just for their euro curves, but their currency mix as a whole.
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