Re: Next is Italy, La Prossima è l'Italia ¶
By: XTOL on Mercoledì 28 Novembre 2018 17:54
Italy's largest bank, UniCredit, surprised the market today when it sold $3 billion in dollar denominated five-year bonds.
To find a willing buyer, the bank had to pay the equivalent of 420 basis points over the euro swap rate, which is six times more than the 70 bps over swaps it paid on five-year euro senior non-preferred bonds just this past January.
The spread on the new issue was a shock as it represented a nearly 150bps concession to current market rates, and is an indication of just how much even the strongest Italian banks have to pay up if they hope to access capital markets during the ongoing Italian political turmoil.