| Issuer: Fannie Mae Amount: ¥100 billion Maturity: 3 years 6 months Coupon: 2% Launched: May 14 Lead managers: Nomura, Merrill Lynch Quite a few mouths stood agape when Federal National Mortgage Association, better known as Fannie Mae, re-opened the international Euroyen market in mid-May. Not least because international investors bought a bond that offered only a 2% coupon – the lowest ever for a global issue. The deal was driven by technical conditions which not everyone was in a position to spot – they combined a mixture of swap arbitrage, a subtle shift in sentiment among international investors towards yen, the need for existing investors to switch out of Japanese government bonds (JGBs), and the desirability of creating a new benchmark, the last having been issued by the World Bank in November 1994. Nomura |
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