Investors force a Eurobond rethink

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The difficulties faced by one quality borrower in 1998 contain lessons for all. Toyota Motor Credit Corporation ­ the captive financing vehicle for Toyota's US sales subsidiary in the US ­ has traditionally been one of the most sought after names in the Eurobond market. The scarcity value of its name and the strength of Toyota meant that deals came to the market tightly priced and then tightened further on launch. The bonds then disappeared into the safe hands of Europe's buy-and-hold ­ largely retail ­ investor base.