Italy “intensified discussions” with hedge funds on bond product sales

June 22 (Reuters) – Italy has intensified conversations with hedge money participating in its syndicated bond gross sales, the head of the country’s financial debt administration business, Davide Iacovoni, mentioned on Tuesday.

Issuers, including the European Union, France and Spain have been capping the orders they will contemplate from hedge resources in syndicated bond sales. Bankers and credit card debt officials say this kind of money normally inflate their orders to safe much better allocations than the modest quantities they acquire.

“The way we regulate that, so far we have not transformed our rules and tips that we talk to buyers, even so we have intensified very substantially the relation with a number of buyers, specifically in the hedge fund group… direclty as a result of our major dealers,” Iacovoni mentioned, speaking at a Euromoney convention on personal debt markets.

“The key concept we are attempting to convey is that we consider to be clear and we would adore to have some reciprocity in this context,” he additional, referring in specific to information from hedge resources on the spread stage at which they will obtain the bond.

Iacovoni mentioned the strategy was “creating some fruit”.

Portugal’s debt administration business head Cristina Casalinho explained Portugal had made the decision to cap the orders it considers from buyers a “very long time in the past”.

(Reporting by Yoruk Bahceli enhancing by Sujata Rao)