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'Everyone is ready for summer to be over' as SSA wave builds for Monday
Analysts discuss the scope of tightening in Bund swap spreads and the impact on SSA spreads
OATs and OLOs could weaken further versus Bunds while southern European countries and EU continue to paint a positive picture
Uncertainty looms large as presidential race far from clear and budget negotiations potentially ‘highly challenging’
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Rating: Aaa/AA+/- Amount: Sfr225m Maturity: 24 July 2020 Issue price: 100.522 Fixed re-offer price: 99.772 Coupon: 1.125% Spread at re-offer: Mid-swaps minus 1bp Launched: Tuesday 25 June Payment date: 26 July Joint books: Credit Suisse, UBS
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Rating: Aa1/AAA/AA+ Amount: £5bn Maturity: 22 July 2068 Issue/re-offer price: 96.426 Coupon: 3.5% Spread at re-offer: 3.5bp over the 4% January 2060 UKT Launched: Tuesday 25 June Payment date: 26 June Joint books: Barclays, Lloyds, Nomura, Royal Bank of Scotland
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City of Prague ended a decade’s absence from the international bond market on Wednesday, drawing double the demand it needed for a €200m 10 year bond. The reception should give other issuers from the region some confidence, said bankers.
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Stability is returning to the CEEMEA bond market and could bring an end to a benchmark drought. But well-funded issuers with deals ready to go now have to decide whether they can face the spreads and size on offer.
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Italy navigated a difficult auction with aplomb on Thursday to round off what threatened to be a disastrous week for the sovereign. It placed its maximum target of €5bn of five year and 10 year bonds. Although yields rose more than 40bp compared to the previous sales of the tenors a month ago and hit their highest level since March, they were still lower than expected, according to analysts.
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AN intrepid minority of SSA issuers are seeking to print new benchmark debt despite uncertainty over market fundamentals and the narrowing window before the summer slowdown, writes Ralph Sinclair.