The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Quality issuers face a year of uncertainty

Quality borrowers got away a lot of issues last month, but investors are getting more choosy, especially about dollar bonds. Rising interest rates and an equity revival also raise uncertainties about the year to come. Mark Brown reports.

Taor: applauds Freddie
Mac for sticking with its
comeback 10-year euro
issue


HIGHLY RATED BORROWERS would be well advised to look behind January's headlines for clues as to what the rest of 2004 holds. The year got off to a superficially promising start. Indeed, quality issuers dominated primary markets last month.

The first full week of the year saw deals from Bank Nederlandse Gemeenten (BNG), Freddie Mac, Rentenbank, Kreditanstalt für Wiederaufbau (KfW), Council of Europe Development, and the European Investment Bank (EIB).

In the week ending January 23, new euro-denominated bond issue totalled e21.6 billion. Excluding sovereigns, agencies and supras contributed e4.9 billion, boosted by Freddie Mac's return to the euro market. The same week, corporates managed to issue just e1.65 billion of euro-denominated bonds.

Total issuance might have been falling well short of January 2003's spectacular e178 billion but it still looked as if quality issuers were capable of repeating last year's trick. Then, they used cheap money to meet annual funding requirements well ahead of schedule.

Look more closely at these deals, though, and it seems that highly rated issuers are in for a tough year.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree