We will call the bank to clarify this point, he added

Grey market gyrations raise co

canada goose clearance sale LONDON, Sept 24 (IFR) Unprecedented grey market activity on recent deals for Canada Goose Jackets some SSA frequent issuers has thrown up questions over how these institutions should manage their large banking groups. canada goose clearance sale

canada goose clearance Co lead banks were in the firing line after bonds were offered below the reoffer price during bookbuilding on recent euro denominated deals for KfW and the EIB. canada goose clearance

While issuers remain convinced the cheap Canada Goose benefits of a large banking group far outweigh the negatives, some remain open to changing the way they manage these groups.

Canada Goose sale approach is based on experience canada goose uk outlet but if this proves to be a turning point, then we are open to changing our strategy, said Petra Wehlert, vice president and head of new public bond issues at KfW. Canada Goose sale

Up until around two years ago, KfW euro funding team managed its co leads on a retention basis, whereby each co lead was automatically allocated EUR50m for every transaction.

Canada Goose Outlet Since then, the issuer has tiered its allocation structure, filling co leads with cheap canada goose uk EUR25m of bonds automatically and allowing them access to an additional EUR25m on a pot basis for which they must show the issuer the orders before allocation. A smaller group of sellers also have access canadian goose jacket to EUR25m on a pot basis but no retention. Canada Goose Outlet

On its last euro deal, a EUR5bn 0.875% five year, EUR600m was allocated across 10 uk canada goose co leads and eight sellers Canada Goose Coats On canada goose sale Sale from orders which topped EUR700m, confirmed Wehlert.

buy canada goose jacket cheap However, with the deal trading 10 cents back from reoffer before pricing, and leads frustrated by their incapacity to intervene in the broker market, speculation buy canada goose jacket was rife that co leads had started dumping bonds. buy canada goose jacket cheap

One banker managing the deal said that some of the co leads had neither the demand nor the capacity for the full EUR50m fill but had put in the orders to curry favour with the issuer.

Canada Goose Parka Along with a rather heavy allocation process, this trend clearly hurt the performance of the bond, which is canada goose factory sale still trading 5bp back from where it priced two weeks ago. Canada Goose Parka

Wehlert, however, is quick to point out however that this is the first time it has experienced this kind canada goose black friday sale of grey market performance this year and, as yet, does not view this single case as a in terms of amending its co lead structure.

ISOLATED INCIDENTS It Canada Goose Parka is only in rare times of stress for these Triple A rated institutions, when the risk appetite in the market turns against them, that these sort of issues are brought to light.

canada goose deals With large funding programmes, it is clearly sensible for borrowers to spread distribution as Canada Goose Online broadly as possible, utilising co leads to access niche domestic investors not handled by the bookrunners. canada goose deals

canada goose store When a deal canada goose uk black friday is going well the co leads have canada goose store a vested interest in engendering Canada Goose sale strong Canada Goose online aftermarket performance. When there is uncertainty around a deal, their fill starts to look less attractive. canada goose store

cheap Canada Goose In the days before KfW launched its five year, EIB canada goose clearance also cleared in a testing 10 year maturity. While the EIB bond performed in the days after the trade, unlike the KfW deal, there were some unsettling signals early in the bookbuild. cheap Canada Goose

canada goose Yet again, broking desks started quoting the deal five cents back of reoffer as observers speculated that early interest in the deal was muted. On this occasion, some hefty central bank orders ensured a comfortably oversubscribed book, and by the time books closed there had been a reversal in the canada goose clearance sale broker market. canada goose

Canada Goose online Leads said that early pressure uk canada goose outlet on the bond was an isolated case, and that the level was never tested, mostly due to the efforts of the EIB euro funding team to ensure bonds didn fall into undeserving hands. Canada Goose online

canada goose black friday sale In the past, canada goose uk shop the EIB allocated co lead bonds on a retention basis similar to KfW, but has since completely switched over to a pot system after it started to question the motives of some of their co leads. canada goose black friday sale

canada goose coats the past with some of our EARNS, certain large banks acting as co leads canada goose https://www.canadagooseoutletmall.com coats have actually underperformed in the distribution process, said Carlos Ferreira da Silva, head of euro funding at the EIB. canada goose coats

canadian goose jacket is why we have moved to a system whereby banks have to prove their real canada goose level of interest in order to get allocated, he added. canadian goose jacket

canada goose coats on sale Now, while EIB still allocates around 20% of bonds to co canada goose coats on sale leads on every euro benchmark, it scrutinises every order. canada goose coats on sale

a co lead puts in a treasury order, we need to assess whether it is a trading order or an order for their own investment portfolio. We will call the bank to clarify this point, he added.

Canada Goose Jackets The other precaution EIB has taken is to reduce the amount of co leads on a deal to avoid the many cooks spoil the broth scenario. In the past it had up to 20 banks active in the transaction, while on its latest deal it had just four co leads and eight junior co leads. Canada Goose Jackets

The truth however, adds Ferreira, is that even with these measures there is no magic solution, and no issuer can Canada Goose Outlet fully police what banks do with the bond.

buy canada goose jacket With both these issuers buy canada goose jacket cheap nearing their funding limits for 2012, and risk appetite starting to swing back in their favour, these deals will likely be put down as isolated incidents, but have no doubt been cause for some head scratching over the last few weeks. (Reporting By John Geddie; Editing by Alex Chambers and Julian Baker) buy canada goose jacket.