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.

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

The Dutch stay in touch

Why the European government bond markets have failed...and what the European Union would like to do about it

Smaller borrowers in the fractured and crowded European sovereign bond market sometimes complain that life would be easier if they had more money to raise in a market which equates size with liquidity and rewards it with a premium. “In the end we have a limited amount of debt to fund,” says Erik Wilders, agent of the ministry of finance which manages public debt through the Dutch State Treasury Agency, “but we have to make choices on which bonds to issue in adequate size.”

The DSTA has issued interest and principal only strips to enable investors to reconstitute holdings of seasoned bonds into newer, more liquid lines. Through recent issues and reopenings it has concentrated on longer-term debt.

The DSTA has also struggled to maintain close contact with investors in its bonds, seeing a risk in being completely removed from end-buyers and disintermediated by primary dealers.

There is a popular joke at the agency. A Dutch finance ministry official goes to Japan to market the excellent credit fundamentals of the Netherlands.

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