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◆ 'Accelerated execution' due to market uncertainty ◆ Popular deal spotted close to fair value ◆ Momentum accounts 'less active'
Primary market for public sector unlikely to see large transactions until after Easter, reckon bankers
Market participants pray for no negative news overnight in hope of ‘pre-Easter wave of issuance’
Two day executions expose dollar issuers to market volatility
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The SSA market got back to business swiftly, if somewhat cautiously, this week, with taps and private placements (PPs) across core currencies coming quickly after the UK’s vote to leave the European Union. Although none of the trades were especially ambitious, their success has set a positive tone for the weeks to come.
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The SSA market is bouncing back from the Brexit shock more strongly than many bankers anticipated, as the State of Hessen picked up more than triple its minimum €250m target in the first trade to hit screens since the UK vote.
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In an encouraging move for European markets after the volatility induced by the UK's vote to leave the EU last week, the German State of Hessen has dipped its toes back into the public market, tapping a July 2026 line for €875m.
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Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark as of Thursday's close. The source for secondary trading levels is Interactive Data.
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Undeterred by political risks, investors are moving back into emerging market currencies in an effort to combat the wafer thin or, in some cases, negative yields in core markets. Lewis McLellan reports.
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