Queen wrote:Thanks Maka for your thumps-up on this IFB. What is your prediction on the market determined coupon rate?
Upwards of 12.50% - 12.70%
Too much liquidity in the market. This will be oversubscribed like crazy... There has been a huge upsurge of uncompetitive bids during primary auctions this will play a big part on how the competitive bids will eventually be cast... Most guys will prefer not to be too aggressive so that you don't miss out.
They might squeeze auction bid rates take a smaller amount than the 75 Bn then do a tap sale.... If this happens the drop in rates for the other IFBs will massively shift downwards...
possunt quia posse videntur