QTC deal: everyone’s a winner

QTC has announced what they referred to as a “material change” in its outstanding benchmark series. After receiving a reverse enquiry from a large institutional investor, QTC bought back $500 million September 2017s and $500 million September 2018 bonds and issued $1 billion worth of bonds comprising $650 million July 2022s and $350 million July 2023s. The institution was clearly seeking to extend duration in their portfolio and QTC was happy to oblige. QTC had already bought back $463million worth of the September 2017s earlier in the month so the state financing body seems to be willing buyer. The investor who instigated the deal would be happy to have the deal facilitated by QTC in market where liquidity has become a limiting factor in recent years. Seems like a rare example of a win-win.