Bond market risks dislocation as needs surge


A euro symbol at the ECB headquarters in Frankfurt, Germany. — Bloomberg

GOVERNMENTS are meeting more of their fundraising needs by raising debt not just through regular auctions, but also increasingly via the syndicated sales route of paying fees to investment banks to build an investor book.

The latter approach used to be dominated by companies and banks, but this year sovereign-related borrowing in the eurozone and United Kingdom constitutes half of all new syndicated debt.

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