MTNs drift on market uncertainty

Issuance is down in the medium-term note market. September’s terrorist attacks have left the market nursing its wounds. Fears about liquidity and concerns about widening spreads have persuaded many issuers and investors to stay away.

Triple-A issuers are an exception. Investors’ flight to quality has made it an excellent time for triple-As to place paper and, despite many triple-A issuers already exceeding their funding targets for 2001, high-grade borrowers are flocking to the market

But for the lower-rated issuers life is more difficult.