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More concretely, we include standard senior debt issuances; the so-called cédulas hipotecarias, which are covered bonds backed by a portfolio of high-quality mortgages; and securitization issuances, which gather MBS and ABS.2 There are papers that study the determinants of issue securitization (Loutskina 2011; Loutskina and Strahan 2009).
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Moreover, the collapse in spreads has coincided with a surge in issuance, which quadrupled over the past year.
The Tokyo Olympics also triggered the start of Japan's addiction to bond issuance, which continues unabated today.
Now it will accept mortgage-backed securities that were rated single-A at issuance, which means they are probably junk now.
Goldman Sachs is on a rota of investment banks that advise the Treasury about debt issuance, which has risen dramatically as the budget deficit has escalated.
The bank suggested Hikma could be on the acquisition trail after announcing a bond issue: Hikma [on Wednesday] announced their potential first bond issuance, which we believe could be partly to fund future M&A plans.
The issuance, which allows shareholders to buy two new shares each in the Italian bank for 1.943 euros, was trading at 68 euro cents a share in midafternoon trading in Europe.
Failure to raise the statutory ceiling on new debt issuance, which the Treasury will bump up against early next year, would be a "great shock to confidence that would quickly spill over to financial markets in the rest of the world".
Finally, management also appeared to give the impression recently that they would look to seek shareholder approval for any future deals, possibly hinting that they are looking at a transaction of more than 10% new share issuance (which $1.4bn would be).
The European Central Bank has ruled out lifting the ceiling it has imposed on Greek debt issuance, which would be required by Mr Tsipras's original plan to issue €10 billion in new treasury bills; it sees this as tantamount to monetary financing.
The financial sanctions are the most developed and will hit Russian state-owned banks debt and equity issuance, which takes place largely through London.
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