Lufthansa hits limits of ECB bond buying
Lufthansa pulled a E500m (US$562m) debt sale Monday, in an unusual move that signals limits to the European Central Bank asset-buying program that has turbocharged Europe’s bond market. Lufthansa said it wouldn’t proceed with the bond placement because of unattractive pricing. A spokeswoman said the airline would “re-engage in the capital market at a later date.” The retreat is the first major misstep for a European blue chip company raising debt since the ECB announced in March that it would buy corporate bonds. That buying has helped push down yields across Europe, allowing companies to raise funds at ultralow rates and unleashing a flurry of debt issuance. A portfolio manager at Henderson Global Investors, said Lufthansa’s move showed investors still have price discipline despite the ECB’s huge buying spree. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-09-27/star/lufthansa-hits-limits-of-ecb-bond-buying
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Lufthansa hits limits of ECB bond buying
Lufthansa pulled a E500m (US$562m) debt sale Monday, in an unusual move that signals limits to the European Central Bank asset-buying program that has turbocharged Europe’s bond market. Lufthansa said it wouldn’t proceed with the bond placement because of unattractive pricing. A spokeswoman said the airline would “re-engage in the capital market at a later date.” The retreat is the first major misstep for a European blue chip company raising debt since the ECB announced in March that it would buy corporate bonds. That buying has helped push down yields across Europe, allowing companies to raise funds at ultralow rates and unleashing a flurry of debt issuance. A portfolio manager at Henderson Global Investors, said Lufthansa’s move showed investors still have price discipline despite the ECB’s huge buying spree. <br/>
