Benign Market Conditions Allow SSA Issuers to Improve Debt Terms

摘要

One of these is that with interest rates at an all-time low in the Eurozone, it is now more expensive than ever for borrowers to hold excess cash on their balance sheets. That is decreasing the attractiveness of issuing jumbo benchmarks, but it also means that pre-funding is considerably less appealing than it has been in previous years. "At a time when hoarding liquidity comes at a cost, we would only consider pre-funding if there were very clear indications that medium and long term funding costs after a swap into six-month Euribor would deteriorate," says Stefan Goebel, Head of Treasury at Rentenbank in Frankfurt. "I don't see that on the cards at the moment."