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The Hunt For Yield… Already!

07 January 2014 by HCM

2014 is barely a week old and the hunt for yield is already at full steam. Names from the periphery have been the main beneficiaries of the first few sessions of the year. Today was no different and these corporates took full advantage of it, through a raft of new issues. A number of deals were brought to the market today, and none was less than twice oversubscribed (and multiple of that in many cases). ELEPOR ( EDP – Energias de Portugal SA) came with a $500m 7 year deal with a guidance of T+325/337.5 which eventually became a $750m 7 year deal priced at T+300. Under these circumstances, even though the end of 2013 was extremely busy in terms of bond issuance, it is difficult to imagine anything else than more new issue in the days to come.