Smaller names fill up

As investors cut back on corporate exposure, high-quality issuers are scooping up funding. Smaller ones can satisfy their needs with many bite-size deals rather than a few jumbos.

Smaller fish satisfy needs with bite-sized deals

Nobody is asking any longer what the world will be like without government bonds, a topic that exercised bond investors when the US moved into surplus at the end of the 1990s and European governments embraced fiscal discipline and debt reduction in the run-up to the launch of the euro.

That’s all over – the biggest sovereigns are all due to increase their state borrowing substantially this year in the face of deteriorating public finances.

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