The prospect of more benchmark issues from top-quality issuers is likely because of a collapse in demand for interest-rate-based structured MTNs. This will not suit issuers, which have taken to the product with some enthusiasm.
High-quality borrowers only issue benchmarks to achieve volume and maintain a level of market visibility. They are able to print at far tighter spreads using structured medium-term notes. In the past few years, there has been a boom in interest-rate-linked MTNs that has enabled supranational, sovereign and agency borrowers to finance on highly aggressive terms.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
