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Quasi-sovereign issuer

A state-controlled company whose debt the market prices with an eye on possible support from its owner.

How to read the number

The spread of such an issue over the government curve shows how far the market believes in that support. It is an opinion of participants, not an obligation of the owner.

When the metric lies

Support is nowhere written down as a duty. At the moment it would be needed, the owner's priorities may lie elsewhere entirely.

Also known as: state-linked issuer

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