German development agency L-Bank has a lower profile than its bigger counterpart, KfW. But Sven Lautenschläger, who is responsible for the bank’s international funding, agrees with other issuers that comparatively small size is not a problem. “Our paper has rarity value,” he says. “Some investors do charge a liquidity premium but over the past few months that seems to have been changing, as people realize that more liquidity also means more volatility. Many AAA investors don’t want that much volatility.
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