The German government is set to issue €5.5 billion worth of inflation-linked bonds next week. They will be the first linkers issued by Germany.The German finance agency, responsible for issuing German government bonds and managing the federal debt, will issue 10-year bonds linked to the eurozone inflation ex-tobacco index.
The agency said it would retain €500 million of the issue to maintain a liquid secondary market. Later issues may raise the final volume to between €10 billion and €15 billion and will be sold either via syndication or auction.
The agency said it wanted to create a liquid market in linkers by issuing bonds with "benchmark maturities". Linkers could become "part of the regular auction process", the agency added.
More on Structured Products
Investors’ capital at risk if underlying is below barrier level at maturity
Veteran equity derivatives banker founds London-based firm Alpima
Separating market risk from credit risk in ratings methodologies makes little sense
Lookback feature aims to mitigate sudden falls in first few months of the term
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.