[Article] Investor demand in syndicated bond issuances: stylised facts (SUERF Policy Brief)
We are analysing (Hillebrand et al., 2021) investor demand in syndicated EFSF and ESM bond issuances from 2014 to 2020 on an unprecedented granularity level of individual orders. In particular, we discuss price dynamics in the transactions and its relation to investor demand, and we examine whether there are any indications of order book inflation that might explain the increased volatility in order book volume. We note that the pricing of ESM bond issuances is carried out in an economical manner, i.e. the new issue premium tends to be lower in a market context with large demand. Also, we look at the drivers of large order books and find a mixture of above average number and volume of orders. This confirms that there are no indications of order book inflation tendencies in the analysed time period.