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. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Germany's sovereign bond shock shows how much the world has changed

Just when SSA bankers were getting used to a market supportive of deals again, Germany has surprised them with a change of approach.

MB_banner_capital_markets-780




Read all Euromoney coronavirus coverage

In normal times, you wouldn't instinctively bet on the Bundesrepublik Deutschland Finanzagentur to put the cat among the pigeons. But on Tuesday it said this:

"In addition, the Federal government intends to conduct syndicates in the second quarter."

What?

Yes, you read that right. Germany is going to sell bonds through syndications.

To say this has left SSA bankers open-mouthed would be an understatement even in these interesting times. For run-of-the-mill euro funding, Germany does auctions, not syndications. Even its long-discussed green bond has always been touted as an auction.

Not for nothing does one head of SSA describe the move as the biggest story in his business. And things had been starting to settle down, hadn't they? As I write, bankers are talking of Wednesday as being the quietest day for weeks.

So, what brought Germany to this? And what does it mean?

Dislocated markets

Let's wind the clock back a bit.




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