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Wells Fargo may have lifted the lid on a flurry of US senior trades in euros this week, opting for a rare but popular floating rate bond to become the first of the nation's banks to head to Europe after reporting its results.
US banks have been very active in the capital markets since publishing better than expected full year results earlier this month, but market participants had been waiting for a firm to target euros, rather than sterling or dollars.
Wells Fargo took the first plunge on Tuesday, as it looked to sell a five year floating rate note in euros. Market participants suggested the success of the deal could encourage further issuance from US institutions.
Bookrunners Credit Suisse, ING, Lloyds, Societe Generale and Wells Fargo circulated initial price thoughts of three month Euribor plus 60bp-65bp for the new transaction, but managed to set a final spread at 50bp, having tightened through guidance of 50bp-55bp.
Demand for the new transaction grew quickly across the morning to reach more than EUR 2.9bn, and...