Nationality has been inordinately important for eurozone bond issuers in 2012. If the word ‘peripheral’ comes into it, that could add a couple of hundred basis points to the price or, much of the time, simply deny access at any rational cost. But there came a moment in the third quarter of 2012 when investors realised that nationality and credit could be distinct issues, and the resulting flurry kept Nomura’s Europe, Middle East and Africa (EMEA) debt capital markets (DCM) team rather busy.
While the international bond markets got off to a roaring start in 2012, much of the confidence and courage held by investors had fizzled out by mid-year. The European Central Bank (ECB) had fuelled the first bout of enthusiasm with its Long-Term Refinancing Operation and its boss would be responsible for the next burst of activity, though with words this time rather than deeds.
