02 Feb 2018
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Primary and secondary credit market news & analysis
** Total EUR issuance volume rebounded sharply to E18.150bn via 29 issues this week largely thanks to IG corporates which supplied EUR10.25bn of the total via 15 separate tranches. For more details of the weekly EUR issuance composition see the IGM Weekly Volume Report
** EPFR EUR IG outflows accelerate to a massive $1,604.25m equivalent in the week ending 16th Nov, largest week of outflows since w/e 17th Feb. Additionally, contacts highlight sizable outflows from London based institutional credit funds this week. For more detail see EPFR Fund Flows Report.
** Louis Dreyfus postponed plans for expected EUR300m 5yr transaction due to challenging market conditions after meeting over 70 accounts. But pipeline remains robust with AusNet Services Holdings Pty the latest to announce its funding plans. See IGM Corp Snapshot for more colour.
** Cash credit spreads trending wider, for IGM's performance tracker of recent EUR FIG issues see IGM FIG Snapshot. For Corporate issues see IGM Corp Snapshot. Meanwhile, iBoxx EUR Corporate index closed Thursday Nov 17th at Bunds +135bp, ca. 10bps wider from a week earlier and taking the index to its widest level since 13th July despite the ECB CSPP backstop.
** There was no primary market activity in Europe on Friday
Broader market price action on Friday 18th November
European stocks witness mixed directionless session into the weekend after modest opening gains fade by lunchtime once again. This has been a common theme in the past week or so indicating a lack of conviction behind any attempt to move higher and a willingness to sell into any bouts of strength in the current environment. EuroStoxx50 was down 0.53% with all sectors apart from IT down on the day (+1.68%) as at 15:59 GMT.
iTraxx indices trend wider again on Friday as they have done for much of the week with the Main index looking to close above 80 for the first time since 07th July, quoted 2.13 wider at 81.88 as at 16:05 GMT, slightly off an intra-day peak of 82.034. The Crossover was +4.41 at 347.66 having temporarily broke above 350 earlier in the day also for the first time since July.
European government bonds maintained their bullish bias throughout Friday's session although Gilts failed to get back into positive territory and underperformed Bunds by around 1/2pt, while trading ranges were large at a full point give or take a few ticks. For more details see the IGM EU Fixed Income Close.
IGM Credit Excel spreadsheets
** The IGM European Weekly Credit Overview is your comprehensive round-up of primary European new issue activity in Excel format, which allows users to conveniently download, save and edit the data as required. As well as new issue terms and conditions the spreadsheet incorporates additional sought after new issue data sets including distribution stats, book sizes, NICs and secondary market performance.
New issue concessions rise to 13bps on average for the IG corporates in the week ending 18th Nov, the highest since the week ending 01st July, while covered bonds register the lowest cover ratio this year to date. See the IGM/EFPR Cheat Sheet.
Economic releases & other events to look out for on Monday
** Monday's data schedule is blank.
** Supply from Belgium (2026, 2031 and 2047) and then US (2yr) will provide an opportunity to gauge appetite for sovereign supply following the recent rise in yields.
** Fed's Fischer and ECB's Draghi provide the CB rhetoric while the ECB also update markets on how much was purchased via CSPP in latest week.
Any feedback on the suggested new format for our Daily Credit Closing report and European Credit Morning Insight would be very well received. Please direct your feedback to firstname.lastname@example.org
IGM FX and Rates
By Marcus Dewsnap 09 Apr 2018
Welcome to our newsletter, The Context, from IFI Research, containing thought leadership articles spanning a host of asset classes.