Does oversubscription mean that the Estonian government can choose which bonds to emit to whom?
What effects does that have for Estonia?
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Does oversubscription mean that the Estonian government can choose which bonds to emit to whom?
What effects does that have for Estonia?
I don't know exactly how Estonia handles this in detail, but it means that each buyer only gets a fraction of what they want to buy. Usually large funds get a bit more than retail customers as it is the case also here according to the numbers.
It means that Estonia is considered a trustworthy creditor.
It means that the finance minister is handing out money to investors. If a bond issue is that oversubscribed the risk/reward is wrong. I this case the rate is too high. Inflation is at about 2% in the Eurozone and Estonia has very little debt, due to having a debt cut due to its independence
It suggests their interests where too high though.