TD Securities

Volatility late in the week failed to dampen a scorching few days of public sector dollar issuance, auguring well for more expected supply in the currency next week. Four issuers — some of which came this week to avoid other trades pencilled in for next week — were able to price deals at tight levels, with some coming through their curves.

Public sector issuers “can do whatever they want” in a rampant dollar market, with investors ploughing into books despite deals pricing close to or flat to their curves.

Public sector borrowers are rushing back into dollars after a quiet few weeks for the currency, with a trio of issuers taking indications of interest for Wednesday business.

The public sector dollar market is set to put a series of obstacles behind it to resume full pace next week — but issuers may opt to instead take advantage of sumptuous conditions in euros.

Three public sector borrowers hit screens in sterling this week, including a rare floating rate note from the Province of Ontario, which made use of the currency for the first time in six years.

FMS Wertmanagement nipped into a quiet dollar market to print a three year Reg S only syndication, the issuer’s first dollar deal at that point of the curve to come through mid-swaps this year.

The Province of Ontario came to market for a rare sterling floater on Wednesday, sharing the UK currency market with a European Investment Bank deal.

A pair of European borrowers have ventured into the otherwise deserted dollar market, ahead of a Federal Reserve rates decision tonight.

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The European Bank for Reconstruction and Development on Tuesday equalled its largest ever size in dollars on Tuesday with a deal priced flat to or through its curve. The Asian Development Bank is set to follow in a market in which issuers are winning demand from investors starved of supply, said bankers.

The European Bank for Reconstruction and Development (EBRD) is set to bring a dollar benchmark to investors starved of supply in the currency. Despite dollar conditions being strong all month, no borrowers brought deals last week — perhaps because they preferred to wait for the first round of the French presidential election to pass on Sunday, said bankers.

The lawsuits over alleged manipulation of the SSA market have spread further, with more dealers and individuals named in a court filing. Citi, HSBC, RBC and TD Bank have now been added, as well as Bank of America, Crédit Agricole, Credit Suisse, Deutsche Bank and Nomura. The suit also draws in the new issue market, alleging that the traders were able to front-run new issues yet to be announced or in book-building.