Newspaper Article

Eurobonds Get Boost From Innovative Deals And Swedish Mortgage Bank's Yen Issue

This article was prepared by Justin Pugsley, Geoffrey T. Smith, George P. Bayliss, Nicholas Elliott, Eric Van Zant, Allison Bisbey and Axel Bugge Of the Dow Jones Capital Markets Report

1994

Overview

Meanwhile, Swedish mortgage-lender Statens Bostadsfinansierings launched a 30 billion yen ($276 million) five-year floating rate issue divided into two tranches via joint lead underwriters Daiwa Europe and Fuji International Finance. The issue came against a background of a strengthening yen and volatility in the Japanese government bond market. The one-year issue is for $100 million and the notes are linked to Italian lire interest rates. Interest floats at 4.5 percentage points over the three-month lira London interbank offered rate -- subject to Libor falling within a range of 7.5% to 9% for the first six months and 6.5% to 8.5% for the remaining six-months. The notes were issued at par via Creditanstalt-Bankverein (London Branch). In the cash market, the government's 6% bonds due 2003 edged up 0.32 point at 102.03, pushing the yield down five basis points to 5.71%. The 6 1/4% bonds maturing in 2024 traded 0.43 point higher at 100.27 to yield 6.23%, down three basis points.

• Publisher: Dow Jones & Company Inc
• Subject: Bond markets / Eurobonds / Futures / GDP / Government bonds / Gross Domestic Product / Inflation / Money markets / Mortgage banks / Prices / Profits / Treasuries / Volatility / Yield curve