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‘Very normal market’ despite ongoing war and volatility to support another wave of new issues
Bankers say the ambition to price the first SSA bond through US Treasuries has faded as recent five year deals stall and barely perform in secondary
Books on the dollar deal opened just hours after Iran attacked the country
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Belarus’ president Alexander Lukashenko has suggested that the country may hold debt restructuring talks this year, just weeks after the country sent out an RFP for a new Eurobond. The news sent Belarus’ 2015 Eurobond crashing 26 cash points. Emerging market bankers warned of a contagion effect in EM debt restructuring.
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Periphery eurozone sovereign yields rose on Wednesday as a freshly elected Greek government hinted that it is prepared to take a bullish stance in relations with its European Union partners. But rather than being a result of contagion fears from Greece to the rest of southern Europe, SSA bankers blamed the yield increases on technical factors — boding well for a pair of auctions on Thursday.
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Investors flocked to a tap of a long dated inflation-linked Gilt on Wednesday, with books hitting £7bn in 10 minutes, despite the yield on offer dropping to nearly minus 90bp.
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The Kingdom of Belgium is mulling the possibility of printing its longest ever bond syndication this year, after the European Central Bank unveiled a programme of sovereign bond buying that crushed even further already low European government bond yields.
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A strong reception to a 10 year Eurobond from Tunisia this week — its first conventional bond since the Arab Spring — marks a large step towards Tunisia’s political and economic rehabilitation, said emerging markets bankers.
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After the rest of the SSA market — bar Greece itself — all but shrugged off the result from the weekend’s election result in the Hellenic Republic, there were greater signs of concern on Wednesday, leading to a slightly softer market tone.