The importance of a functioning new-issue market cannot be understated. It is primary issuance that creates transparency and pricing, helping secondary market trading. Regardless of whether the new issues are cheap, expensive or priced fairly, the key is that – at that moment, for that issuer – there is a clear price in the market for a very large transaction. From that follows the relative pricing of different issuers and structures.
The return of some liquidity is also good news for credit valuations.
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