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Markets ‘not out of the woods yet’ as large sovereigns shorten execution process to de-risk issuance
Huge order book allowed the issuer to increase size of five year dollar trade
Issuer had already pre-funded in dollars earlier this year
◆ German state brings third deal of 2026 ◆ Investors appeared ‘insecure’, extra spread to KfW needed ◆ Minimal NIP paid, size target reached
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The City of Paris was forced to widen pricing on a 15 year bond offering on Wednesday, with leads blaming the move on a rally in bonds that followed dovish comments from US Federal Reserve chair Janet Yellen on Tuesday.
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Issuers have nipped into the euro market after Easter with some canny deals. Meanwhile the dollar market was watching US Federal Reserve chairperson, Janet Yellen, who on Tuesday said that the possibility of further rate hikes was “not a plan set in stone”.
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The City of Paris is set to follow deals from the European Stability Mechanism and SNCF Réseau last week by bringing a trade at the long end of the euro curve.
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Holders of Mozambique’s “tuna bonds” have until close of business on Tuesday to accept a restructuring proposal after an early bird deadline was extended.
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The Canton of Geneva has printed a 20 year bond with what bankers on and off the deal say is the lowest ever coupon at that tenor for a Swiss public sector issuer.
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Dubai Islamic Bank emerged with the year’s first public deal from a Gulf Co-operation Council financial borrower on Tuesday morning.