Swedish 5 Year Bond
Strategy Sweden: New Five-Year Benchmark Bond
Stadshypotek is introducing a new five-year bond this week. The bond, the SHYP1582, will become the new five-year benchmark bond and will most likely be deliverable in the December 2014 bond future contract. The bond matures on 18 September 2019 with full first coupon. The coupon is set at 2.5% and the ISIN code is SE0005965746.
Stadshypotek has set an initial target for issuance volume to benchmark size at SEK3bn with possibly more depending on market interest. Issuance will be done versus swaps. Swedish bond benchmark indices will experience a relatively large index duration extension during the week which will be supportive for the introduction of the bond.