Corporate borrowers surpassed expectations again last week, firing deals into a market still reeling from rates volatility as well-flagged event risk ahead threatens to increase costs further still. More Bund and Gilt volatility complicated issuance conditions, but bankers said that with political hurdles ahead it was a case of knowing when to hold and when to fold. "Issuers saw the heavy political calendar coming and a good number of clients preempted the US elections, and 2017 will be more challenging and the windows of opportunity will be less," said Marc Tempelman, vice-chairman of global capital markets at Bank of America Merrill Lynch. "We have the French and Dutch elections, the expected trigger of Article 50 and blackouts, so it will be trickier for issuers to pick their spots." Most borrowers had to pay hefty premiums, but that did not stop 19 from printing €8.7bn of paper. "Some were reassessing their options earlier in the week, but the tone has shifted in the last few days and we're seeing most take a pragmatic approach to pricing," one banker said. The weekly issuance total surpassed Thanksgiving week 2015 and 2014 volumes by around €1bn.
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