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SSA MTNs and CP

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  • The Queensland Treasury Corporation (QTC) announced on Monday that it plans to borrow A$21bn ($15.2bn) during its 2020/21 fiscal year, which runs between July 1 and June 30. Alongside this, the state signalled its intention to look at issuing green, foreign currency and long term debt to complement its benchmark programme.
  • The Asian Infrastructure Investment Bank (AIIB) returned to the market this week to place two more deals, as it ramps up its MTN issuance following a debut in Hong Kong dollars last Friday.
  • Communauté Française de Belgique returned in mid-August after a seventh month absence to print a slew of deals for a combined €404m, according to Dealogic.
  • Bank issuance of commercial paper has fallen sharply in 2020, thanks to generous liquidity provisions from the ECB. But overall issuance has climbed slightly, mostly off the back of increased SSA activity.
  • The Euro Short Term Rate may be running into the first real problem of its short life. The benchmark was designed to provide a reflection of wholesale euro overnight borrowing costs based on real transaction data. But what if there aren’t enough transactions?
  • A sudden dip in the volume of €STR transactions and the number of banks submitting data has led to market participants voicing concerns about the rate.