Primary market bullets:
** Just the one sub-benchmark deal from Cofinimmo SA on the day but still an active week for IG EUR supply with EUR15.34bn printed across all sectors, up from EUR12.635bn the week previous. For more stats/observations on this week's volume see IGM's WEEKLY VOLUME report.
** Not for the first time this year, it was corporates which dominated the weekly supply with the sector accounting for EUR8.875bn of the total issuance. Demand remained fairly strong for the week's paper with the average cover ratio standing at 2.71x (excluding the SEC-Reg two-parter deal from Becton, Dickinson & Co where no booksize was communicated). This suggests there is still plenty of unsatisfied investor demand which could encourage more corps to launch new deals next week, although this will depend on the broader market tone following the political risk events over the weekend. Two of those which could hit the screens are AusNet and Zimmer Biomet which both wrapped up investor meetings this week.
** No fresh FIG supply Friday but volumes picked up to a five week high. See IGM's FIG SNAPSHOT
** Latest EPFR weekly fund flow data shows IG outflows from Euro denominated funds continued in the latest week although the pace decelerated to an equivalent $509.78mn (from $1,895.49) while HY outflows also saw outflows for a fifth consecutive week. See the IGM/EPFR FUND FLOWS report for more.
IGM Credit Excel weekly overview
** 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.
Broader market developments on Friday:
** European stocks lost more ground Friday while FI/synthetic credit markets regained footing
** US NFPs near consensus but wages drop for first time since Dec 2014 - no major impact seen on Fed stance
** Oil levelled out following big 2-day rally, on course for circa 14% weekly gain (Brent)
** Core govvies came off the ropes following big sell-off Wed/Thu. BTP/Bund 10yr spread tightened for 4th day
** Stoxx600 -0.42% as at 15.25, energy/techs weakest links
** iTraxx Main / Crossover tighter by 1.04 and 4.67 respectively, most of which followed US employment report
What to watch Monday:
** Politics : �No" is priced for Italy's senate reform vote (Sunday) but could still trigger ECB put (higher BTP purchases) if markets react badly while also cementing calls for ECB QE extension beyond March
** Data: highlights comprise EZ, UK and US service PMIs but will likely matter less than politics
** Supply: none, while coming week's schedule is also light
** Events: Fed speakers comprise Dudley (13.30), Evans (14.25) & Bullard (19.05)
** Watching: BTPs, Italian banks as key sentiment gauges following Sunday's vote
** For rundown of coming week's risk events see IGM's Fixed Income Week Ahead
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