It might not have the funding needs of the World Bank, the US agencies or large corporates such as Ford, but the Inter-American Development Bank has done a good job of keeping its name in investors' minds by appealing to the leitmotivs of fixed-income investing: keep it big, and keep the investors informed
It might not have the funding needs of the World Bank, the US agencies or large corporates such as Ford,but the Inter-American Development Bank has done a good job of keeping its name in investors' minds by appealing to the leitmotivs of Wxed-income investing: keep it big, and keep the investors informed.
The IADB has something else to its advantage. "Institutional investors are looking for diversiWcation, and our credit can oVer that," says Stephen Abrahams, divisional chief, capital markets at the IADB. "We are a high-quality alternative to the US agencies, which investors are getting overweight in as a result of the decrease in supply in US treasuries."
The problem is that there's only so much the bank can oVer. The IADB expects to raise only between $7 billion and $9 billion this year, "and that'll probably end up being closer to the lower end of the range," says Abrahams.