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Sub-sovereigns

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◆ Deal came after recent Ontario 10 year ◆ Ontario underperformed but still a key comp ◆ Some price sensitivity? No bother
◆ Another German issuer jumps into primary ◆ Orders rush in after pricing was fixed ◆ Does spread to KfW matter anymore?
◆ Aussie issuer returns after 2025 debut ◆ Asset managers like scarce international Australian risk ◆ Canadian names used to find fair value
Andreas Becker, head of treasury and pension fund for Land NRW, discusses borrowing strategy
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  • SSA
    The coronavirus crisis has brought the role of the public sector agency into sharper focus than ever. With companies suffering devastating losses of revenues, sovereigns are doing their best to shoulder the burden and ensure companies have what they need to protect jobs. To do this, many sovereigns are leaning on their agencies as the best way to transmit economic support packages. GlobalCapital held a roundtable in mid-May to discuss the impact of the coronavirus pandemic on the agency sector and how it is managing the crisis.
  • The world is facing an unprecedented crisis, the economic effects of which we are only beginning to understand. Sovereign funding will be at the heart of the effort to mitigate those effects. GlobalCapital hosted a virtual roundtable in May to discuss the effects that the pandemic is having on sovereigns’ borrowing requirements and market access, and how they are handling the situation.
  • CEE
    Central and eastern European countries have pushed to be considered in the same light as those deemed more developed on the continent for years. Their handling of the coronavirus pandemic, including debuting quantitative easing, shows such monetary weaponry — and the burden it brings — is no longer the preserve of developed markets.
  • The Flemish Community has mandated banks to arrange the sale of new seven and 30 year bonds as the Belgian sub-sovereign looks to pump in cash to finance a budget deficit which has arisen from the coronavirus pandemic.
  • A wide gamut of deals across asset classes filtered through the Swiss franc market this week. Gyrations in swaps allowed Crédit Agricole to come flat on euros on Thursday, while also giving investors a great deal on a long end Lausanne trade.
  • SSA
    Germany is set to announce extra fiscal stimulus next week, a portion of which will be dealt with at regional level. But one state treasury official does not believe it will affect his Land's borrowing programme.