FOMO is Gripping Credit Markets, Making Bond Premiums Vanish
- Rampant demand for bond deals wipes out new issue premium
- Also, Japan’s CLO Whale Norinchukin plots return to market
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It’s been some time since companies could raise cash in debt markets and come away feeling like they got the better end of the deal.
For most of 2022, borrowing was a delicate game of dodging rate hikes and negative inflation data and showering bond investors with extra yield in order to ensure they bought your debt.