Ontario's $200 Million Eurobond Targets Japanese Investors

• Published in: Wall Street journal. Europe
• Main Author: This article was prepared by Adam Bradbery, Kevin Dunn, Robert S. Duncan, Nicholas Elliott, Anita Greil, Anette Jonsson, Geoffrey T. Smith, Henry E. Teitelbaum And Dan Weeks of Dow Jones Capital Markets Report
• Format: Newspaper Article
• Language: English
• Published: Brussels Dow Jones & Company Inc 23.10.1995
• Edition: Europe
• Subjects: American dollar; Currency; Eurobonds; Federal Reserve monetary policy; Government bonds; Inflation; Interest rates; Prices; Profits; Treasuries; Yen; Yield curve
• ISSN: 0921-9986

And Suedwestdeutsche Landesbank became the latest borrower offering a reverse coupon deal but added a multicurrency twist to it. The German bank offered 10 billion yen ($99.7 million) of 20-year Eurobonds with a coupon payable at 5.6% in Australian dollars, 5.35% in marks and 6.6% in U.S. dollars, due Nov. 16, 2015, via lead underwriter Nomura International. Bond futures were down nearly 2.50 points at their session low and the 10-year spread to German bonds widened by more than 35 basis points as the Bank of Italy sold marks in an effort to shore up the sagging currency. Prices slumped across the yield curve as investors sold short-term issues on currency weakness and fled the long end due to the continuing political turmoil. The 10.5% issue of 1998 fell 0.69 point to 98.39, to yield 11.58%. The 10.5% issue due in 2005 plunged 1.99 points to 92.15, yielding 12.26%. The 9% bond maturing in 2023 tumbled 2.19 points to 74.67, to yield 12.58%.