Ken Jaques
Manager NY credit & derivatives
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USA
52+ years of experience
IGM Credit
By Ken Jaques 05 May 2022
Factors including the ongoing Ukraine war, China’s covid lockdown impact on supply chains and increasing fallout from inflationary fears (and rising rates to combat this) have all played a significant part in April’s issuance trends EUR supply more than halved from the previous month, with the corporate sector arguably the hardest hit. Despite the generally weak showing, the HY market was reopened after an 11-week hiatus IG issuance in the APAC region slowed to a lesser extent than in EUR. Issuers were forced to pay c11bp NICs on average. HY volumes were boosted by the emergence of a number of Australian HY mining concerns US ex-SSA volumes surpassed street expectations and were skewed towards domestic bank issuance (41%). NICs remain in double digit territory (10.08bp on average) whilst cover ratios fell to 2.75x
Topic Industry News
IGM Credit
By Ken Jaques 07 Apr 2022
Supply bounces back in March as funding markets shake off war impacts Investors demand bigger premiums though (higher NICs) as markets reopen US IG (ex-SSA) leads bounce-back (sees biggest month since May 2020) EUR supply rise driven by IG Corporates but HY stays shuttered Regional sovereigns target long end but pay elevated premiums in APAC
Topic Industry News
IGM Credit
By Ken Jaques 04 Mar 2022
Global primary credit market issuance freezes up in February on elevated volatility Russia's invasion of Ukraine compounds fears of more aggressive Fed tightening Investors demand more spread compensation, New Issue Concessions (NICs) jump EUR supply almost halves, SSA deals attract bumper order book sizes, ESG thins US IG ex SSA issuance falls short, NICs leap to most since May 2020 APAC US$ Feb supply lowest in +6yrs, NICs elevated, China IG financials buck trend For more specific regional highlights see below..
Topic Industry News
IGM Credit
By Ken Jaques 04 Feb 2022
Global primary credit markets contend with heightened volatility in January. Investors prove more demanding, new issue concessions up across the board. US IG issuance tops $200bn, 2nd busiest ex-SSA issuance January on record. EUR supply 3rd largest on record, higher rate prospects spur funding rush. EUR corporate ex HY & FIGs see elevated NICs, lower average cover ratios. APAC US$ supply slowest Jan since 2019, NICs trend higher, HY near absent. For more specific regional highlights see below.
Topic Industry News
IGM Credit
By Ken Jaques 08 Dec 2021
IGM Global Credit Snapshot | Thursday, 8th December 2021 - Global primary market activity still sluggish in November with the focus on quality - Raised volatility, emergence of Omicron variant and Fed tapering concerns affect sentiment. - EUR IG Corporate and unsecured FIG borrowers raise activity, though at a cost - APAC US$ primary market dominated by IG, HY flounders, China property developers absent - US IG ex SSA issuance exceeds Street estimates with highest November since 2017 - For more specific regional highlights see below.
Topic Industry News
IGM Credit
By Ken Jaques 04 Mar 2021
DOWN BUT NOT OUT FEBRUARY 2021 - February issuance volumes slowed after a blow-out January. - This is usual after the January funding rush and amidst earnings blackout periods. - Long Lunar New Year holidays in China in part also dampened issuance volumes. - However, with US Treasury yields breaking fresh highs, issuers were also enticed to fund sooner than later. - IGM metrics tracked show investor appetite remaining particularly strong for investment grade issuances.
Topic Industry News
IGM FX and Rates
By Ken Jaques 31 Aug 2020
Bargain Basement Borrowing Costs Spur Record Issuance Historically, the month of August has been associated with such phrases as “the dog days of summer” and “those lazy, hazy, crazy days of summer.” This year, however, someone let the “dogs” out, and the days were just “crazy” in terms of corporate bond issuance, across all asset classes. Over the past decade, the month of August has consistently ranked as the second slowest high grade ex-SSA issuance month of the year, averaging a mere $69.684bln in ex-SSA high grade issuance. As a matter of fact, coming into this month, despite the extenuating circumstances that have caused all forms of corporate issuance to literally explode this year, the Street was so convinced that this August would be no different from those that had gone before that the highest ex-SSA high grade issuance estimate came in at $71bln. Well, this year is certainly “different” than any other year – we have already set a new annual ex-SSA issuance record of $1.421.135bln, 83.1% higher than last year at this time, with four months remaining. The previous record was 2017’s $1.335.363bln. And, when it comes to this August, the same holds true. This year 100 borrowers raised an unprecedented $139.984bln during the month of August, shattering the previous August issuance record of $114.873bln set back in 2016. Read more...
Topic Industry News
IGM Credit
By Ken Jaques 05 Jul 2020
As a result of the Covid-19 induced lockdowns, many cash-strapped corporations - those who could - descended on the US public debt market in droves, raising an unprecedented $723bln in Q2 2020. That brought ex-SSA H1 issuance to an unheard of $1,214,331bln, topping all estimates for the year. Fun fact: 2020 high grade issuance is running 101.8% higher than last year at this time. Along the way, many milestones were set including a quarter that produced (1) three of the top six busiest ex-SSA issuance months on record (2) the busiest ex-SSA issuance month on record (April’s $297.775bln) (3) and needless to say, the busiest issuance quarter, and half, of all time ($723.121bln and $1,214,331bln respectively).
Topic Industry News