Challenges build despite golden era for funding

Supranational borrowers cannot ever have had it so good as over the last couple of years. Blessed with credit quality as rock-solid as it gets in the middle of a prolonged flight to quality, this group of borrowers has been able to take advantage of a strong bid not just in core currency markets but also in local currencies as a rush for yield has sent investors scrambling every which way to try and earn a return.