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Friday's primary highlights

** Just EUR1.5bn of EUR IG/Split rated paper printed in the primary market on Friday courtesy of 3 separate deals. See the IGM DAILY EUR NICS & BOOKS for more details

** BPCE SFH added to the week's covered supply on Friday via a EUR750m 7yr Obligations de Financement de l'Habitat (OFH) which printed at m/s +6 having been tweaked from initial guidance of m/s +8 area on the back of demand topping EUR1.2bn from ~60 investors. See the IGM COVERED SNAPSHOT for more on this deal and our performance tracker of recent covered deals

** In FIG, Skandinaviska Enskilda Banken AB (SEB) printed an inaugural EUR500m 5yr Green bond which attracted demand of over EUR2.1bn, allowing the issuer to price the deal at m/s +20 from m/s +mid-high 20s IPTs. See IGM's FIG SNAPSHOT

** Agence Francaise de Developpement (AFD) which tapped its 0.375% Apr 2024 bond for EUR250m at m/s +15. Comes after the issuer was forced to pull a USD1bn no grow 3yr transaction during bookbuilding on Tuesday due to heightened market volatility

Weekly observations

** Friday's supply brought the weekly IG/Split-rated total to EUR28.9bn via 31 separate tranches with the SSA sector accounting for 58.8% of the total weekly volume, 38.9% of which was issued in the 10yr+ maturity bucket . See IGM's WEEKLY VOLUME Report for more details

** The corporate sector drew a blank on Friday which left supply at a modest EUR2.95bn for the week. For some takeaways from the week's primary corp activity see IGM's CORP SNAPSHOT

** Data from EPFR Global for Euro-denominated IG bond funds shows investors put money in for a third consecutive week, with the pace of inflows accelerating to an equivalent $924.25m from $760.28m 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, booksizes, NICs and secondary market performance

IGM/EPFR Weekly Cheat Sheet

**IGM/EPFR Weekly Cheat Sheet in Excel 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

Potential primary supply next week

** American health care company McKesson Corporation concluded an investor roadshow on Thursday via Barclays, Deutsche Bank, MUFG and UniCredit and is expected to launch a M&A driven debut multi-tranche EUR/GBP transaction in the near future

** Austrian real estate company CA Immobilien Anlagen Aktiengesellschaft mandated Erste Group Bank and Raiffeisen to hold an investor call on Tuesday (14-Feb) ahead of a sub-benchmark Euro transaction

** Telefonaktiebolaget LM Ericsson, Parker-Hannifin Corporation and Smiths Group are all scheduled to hold roadshows next week (week of 13th Feb). See the full corp pipeline here

** Land NRW could pull the trigger on a new 7-10yr EUR Green bond after holding investor meetings recently via BAML, Citi, CA CIB, JPM and SEB.

** Also eyeing a potential Green bond is Caisse Des Depots et Consignations (CDC) which is scheduled to kick-off presentations on Monday via BNP Paribas, CA CIB, HSBC, JP Morgan, Natixis and SG CIB

** After conducting a roadshow Iccrea Banca S.p.A. could go live with a short-dated EUR benchmark via Banca Akros, Iccrea Banca, Mediobanca, Raiffeisen and UniCredit

Friday's broader market developments

** EU risk assets opened higher but then faded - sentiment still fragile in Europe

** Different story on Wall Street - another record high on S&P500 in wake of Trump's �phenomenal" tax pledge

** Brent rose up to 2% after IEA revised demand estimates higher and flagged 90% compliance on OPEC cuts. Broader commodity complex also firmed

** Data-wise - China exports/imports posted big beats. UK and Italian factory data was strong while French equivalent was weak

** European stocks saw materials and energy gain while financials and consumer stocks fell

** Govvies - EGB yields drifted higher but BTPs performed worse ahead of Monday's BTP supply

** iTraxx indices opened tighter but spent rest of session drifting wider - still well inside mid-week wides though

Market snapshot (15.35)

SXXP +0.01% / SX7P -1.12%

GER 2yr -0.6bps at -0.80% / 10yr +1.2bps at 0.32%

ITA 10y +8.7bps at 2.243%

Brent +1.38% at USD56.40

iTraxx Main +1.5 at 75.3 / Crossover +1.7 at 301.2

Event risk to watch Monday (and in the coming week)

Monday is quiet in terms of data and events so there should be time to get any last minute Valentine's Day presents or cards for anyone who is behind the curve. On a more business related angle, that also means there's little to interfere with a go/no-go call.

** Data: No key data scheduled

** Events: No key events scheduled

** Supply: Italy sells up to EUR10.75bn BTPs (3-30yrs). Given the fragility seen in non-German debt over the past week, the sale will be one to watch closely

** Earnings: The agenda is light with just 4 Stoxx600 and 5 S&P500 companies due to report

** Viewpoint: Fixed Income Week Ahead - Yellen faces potentially hostile 2-day testimony on Capitol Hill. ECB minutes of interest as to the QE effectiveness/potential tapering discussion. UK inflation a reflection of Gbp depreciation and the impact on the real wage-retail sales dynamic in focus.

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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