Bubble (and squeak)

摘要

The demand frenzy in the bond markets last week was quite something. The US high-grade market saw its second-biggest volume week ever, while in Europe the appetite for risk seemed to defy gravity. Additional Tier 1 offerings from the likes of Santander and Danske Bank proved remarkably popular. And Nationwide Building Society, which last November caused a modicum of confusion with its issue of Core Capital Deferred Shares, because some accounts struggled to decide whether to view it as debt or equity - clue: it's equity - managed to sell a £1bn AT1 CoCo convertible into the self-same CCDS. It garnered an £11bn order book in the process.