Sub-IG BPE not a straightforward sale

摘要

BPE last week brought 2015's first sub-investment grade senior financial deal, but struggled to get a large oversubscription as investors chose to buy better-quality names instead. Issuing as BPE Financiaciones and guaranteed by Banco Popular Espanol, the Ba3/ BB+ rated Spanish bank attracted orders of some €950m, far less than the likes of Credit Agricole or ING, which sold multiple times subscribed bonds. "There is liquidity out there but investors want to park it in the right places," said a banker. "There is not the same depth out there for these names as there is for the big dogs." Sub-investment grade bank issuers made hay in 2014, making the most of the investor chase for yield. However, volatility at the end of 2014 has spilled over into 2015, putting a dampener on demand for riskier credits.