** The only supply in the Euro primary market on Friday came courtesy of the EIB which re-opened its 1.25% Nov 2026 Climate Awareness Bond (CAB) for EUR300m at a spread of m/s -27
** The EIB trade leaves total EUR issuance for the week at EUR43.45bn via 28 deals which is up on the EUR39.45bn (35 tranches) which printed the week previous. See IGM WEEKLY VOLUME: Volumes rise on SSA momentum (w/e 27 Jan) for more
** Supply was spearheaded by the SSA sector which saw a combined EUR29.85bn print including jumbo deals from Spain (EUR9bn Apr 2027) and France (EUR7bn Jun 2039). This latest SSA total is larger than any other week in 2016 or 2017
** It was another fairly active week in the Corporate market where a further EUR6.6bn was issued to bring total YTD corp issuance up to EUR30.335bn. For some takeaways from the latest corporate deals see IGM's CORP SNAPSHOT
** Weekly FIG EUR issuance fell to EUR4.5bn (from EUR6.05bn) although demand remained strong where the four deals that priced attracted combined demand of over EUR9.25bn. For our secondary market tracker of FIG deals see IGM FIG SNAPSHOT
** For the week ending 25th January, data from EPFR Global for Euro-denominated IG bond funds showed investors put money in totalling an equivalent $488.51m, after recording outlfows of $544.72m the previous week. See IGM's EPFR FUND FLOWS Report for more
IGM European Weekly Credit Excel Spreadsheet
** 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 new issue data sets including distribution stats, book sizes, NICs and secondary market performance
IGM/EPFR Weekly Cheat Sheet in Excel
** IGM/EPFR Weekly Cheat Sheet provides proprietary intelligence on Euro primary market trends using various key data points in an easily digestible Excel spreadsheet. This includes Euro new issue volumes, average new issue concessions and book cover ratios across asset classes, as well as EPFR fund flow data and other key credit proxies
Next week's primary prospects
** Supply could slow slightly next week as more issuers enter blackout periods as we head further into Q4 reporting season
** Austrian construction company Porr AG wrapped up a series of investor meetings on Thursday and could launch a Euro perp NC5 hybrid issue via HSBC
** In the Sterling market, The Society of Lloyd's could pull the trigger on a GBP 30NC10 Tier 2 issue whilst Land Securities Capital Markets PLC is eyeing a single or dual tranche (7-12yrs expected) snr deal. This follows after both held respective roadshows this week
Friday's broader market developments
** European risk markets remained cautious, extending weakness seen Thursday. US Adv Q4 GDP disappointed
** European stocks dragged lower by financials after UBS beat but flagged outflows from wealth management. Unicredit hit on chatter of capital raise
** iTraxx Main and Crossover touched their widest levels of the week on Friday
** Govvies - risk off tone lent support to bunds but periphery remained under pressure. 10yr Italy yields touched highest since Jul 2015, rising as much as 26bp on the week
Market snapshot (15.40 GMT)
SXXP -0.47% / SX7P -1.14%
GER 2yr -1.1bps at -0.679% / 10yr -2.0bps at 0.459%
iTraxx Main +0.8 at 70.7 / Crossover +2.8 at 293.7
What to watch Monday (and in the coming week)
** Data: German CPI is seen rising to 2.0% annually in January. If it does, that would be the highest since 2012. Colour on the national figure emerges from 08.00 when the State of Saxony reports
** Supply: Italy sells a combined EUR5.75-6.75bn 2021 and 2027 BTPs and also EUR1.75-2.25bn 2024 CCTEUs. Given the significant pressure seen on BTPs in the most recent week, the sale will be one to watch
** Earnings: 2 Stoxx600 and 5 S&P500 companies report
** China will be out for Lunar New Year holidays which could reduce liquidity in global markets, as could the approach of month-end (Tue)
** Viewpoint: Fixed Income Week Ahead - BoJ, FOMC and BoE all meet. US Employment Report focus on wages and possibly underemployment rate and Eurozone CPI set to maintain acceleration.
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