Low yields lay track for repack ramp-up

摘要

The decline in yields to all-time lows has helped fuel substantial growth in the bond repack market, crowned by a surge in issuance from relatively newly established multi-dealer SPV Spire. Bond repacks are backed by existing debt securities and issued by bankruptcy-remote SPVs. The cashflow from the underlying security is channelled via a swap counterparty to typically change either the coupon or currency. By use of repacks, investors can maintain credit exposure while enhancing or tailoring a coupon to their specific needs.