"It just goes from bad to worse for Europe, which had been hoping to issue €5
billion in 15 year bonds to finance part of the Irish bail out via the EFSF.
Instead, once seeing the orderbook, or lack thereof, Europe ended up slashing
the notional by 40% and the maturity by 33%, to a €3 billion issue due 10 years
from now. And that is hardly the end of the concessions. As the FT reports, "The
bond from the European Financial Stability Facility will only target €3bn,
instead of €5bn, and will be in 10-year bonds rather than a 15-year maturity
because of worries over demand. A 10-year bond is more likely to attract
interest from Asian central banks than a longer maturity. Banks hired to manage
the deal are Barclays Capital, Crédit Agricole and JPMorgan." Do you see what
happens Larry, when China walks? But so we have this straight, Europe plans to
fund a total of €1 trillion in EFSF passthrough securities.... yet it can't
raise €5 billion? Just.... Priceless..."
at http://www.zerohedge.com/news/demand-efsf-paper-collapses-world-wakes-post-bailout-hangover
at http://www.zerohedge.com/news/demand-efsf-paper-collapses-world-wakes-post-bailout-hangover
