We already know something about the buyers of Monday’s difficult-to-get-away €3bn 10-year EFSF bond issue. And here, via JPMorgan, is a little more detail.
What’s interesting is the muted demand from traditional fund management community – insurance, asset managers etc – and the big take up by non co-lead banks, presumably French ones if the geographic break down is anything to go by.
(Click to enlarge).
And the central bank take-up seems to confirm rumours that the Bank of Japan took up 10 per cent of the issue, although that’s less than it took in the previous EFSF issue.
As for the co-leads, it’s normal for them to buy that much of an issue, apparently.
From the FT:
Banks that jointly managed the deal, Barclays Capital, Credit Agricole and JPMorgan, said it was a sign of strength that the fund could price in such a difficult market with Italian bond yields hitting fresh record highs and the European Central Bank reported by traders to be intervening to steady nerves.
One banker said: “The EFSF wanted to show that it can price in any market and for that reason I would say this is a successful deal.”
He also dismissed concerns raised in some reports over the fact that co-lead banks on the deal bought about 12 per cent of the bonds, insisting that this was normal in every bond offering.
Related link:
Euro rescue bond sale struggles to hit target – FT