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SSA MTNs and CP

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  • Investors starved of paper from well-funded borrowers and the summer slowdown allowed the State of Berlin to increase a €100m 10 year print to €250m this week, following a €125m eight year from the sub-sovereign a day before.
  • Mitsubishi UFJ has hired a senior MTN dealer as head of medium term notes, the latest move in the company’s efforts to grow its MTN business.
  • The International Finance Corporation is looking to enlarge its Brazilian reais issuance and boost its profile with Uridashi investors.
  • Ireland’s capital market renaissance spread to the very short end of the curve this week, as it sold its largest piece of commercial paper outside its home currency in two years. Meanwhile, the sovereign is also seeking to reduce its near term redemption pile as part of its recovery process after coming off International Monetary Fund and European Union support last year.
  • The World Bank could follow up a series of dollar private placements linked to CMS rates after receiving strong demand for the structure. Other issuers could follow suit as investors bet on the US Federal Reserve increasing interest rates next year.
  • SSAs in the European Union have slashed their outstanding volumes of commercial paper and certificates of deposit in euros by over 15% since the European Central Bank cut its deposit rate by 10bp to minus 0.1% on June 5. The figures come as Standard & Poor’s warned that the rate cut could cause investors to pull out of money market funds — one of the ECP market’s most important investor bases.