Rebooting the dollar market
Issuing a $4 billion deal in the climate of fear and uncertainty that characterised October's primary market required courage. Yet someone was needed to break the deadlock and IBM stepped forward. Simon Boughey looks at the deal's effect on the dollar market
Every so often, in moments of crisis in the financial markets, comes a deal that has a palpable and salutary effect on both borrowers and underwriters. It will be remembered after the crisis has passed for being a turning point. Such a deal was the $4 billion three-tranche five-year, 10-year and 30-year trade for IBM, launched on October 9th via Banc of America Securities, Barclays Capital, Credit Suisse and Deutsche Bank.
In the months of July, August and September, the US high grade debt market
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