Swaps - BASIS SWAPS
Basis swaps got an alarm call from Verizon this week, just as it toyed with the idea of a big sleep. Cable has been busy, BNPP eyes EUR/USD offers.
The front-end was in focus today as 6m Euribor fixed below the depo rate for the first time.
Like battle-hardened moose hunting together in packs, the Canadians have returned to the cross-border new issuance and basis swaps markets this week.
Major x-currency basis markets were quiet today, with the EUR issuance understandably distracted by SURE. 7y cable flow and CNH supply caught the eye.
The euro new issue pipeline has a dozen names expected to price in the near future
A barrage of USD issues from big EUR funders left as quickly as it arrived as SURE supply in EUR looms. China sold its first 144a in 24 years.
The prospect of unified EU SURE bond issuance in the EUR market saw SSAs scuttle to raise USD funding today.
Richness in the Buxl ASW persists as it lingers near recent highs. Strategists at SocGen warn against fighting EONIA/BOR narrowing.
ISDA has announced that its IBOR Fallbacks Protocol and Supplement will be launched on Oct 23, to become effective Jan 25.
More than a dozen issuers are expected to price in one of the busiest days so far this year.