** It was a fairly measured start to the week for the IG primary market on Monday where EUR4bn printed in the single currency via three separate tranches courtesy of two issuers. For details on the trio of deals see the IGM DAILY EUR NICS & BOOKS. That follows the slowest week of the year so far (see chart below)
** Morgan Stanley spearheaded supply with a self-led SEC-registered EUR3.5bn two-part issue comprising a EUR1.5bn 5.5NC4.5 floating rate and EUR2bn 10yr fixed rate tranches. For more on this deal and the secondary market tracker of recent FIG trades see IGM's FIG SNAPSHOT
** LeasePlan Corporation N.V also hit the screens on Monday with a EUR500m no grow Nov 2020 floating rate note which landed at 3mE +52 from a +60 area IPTs starting point on the back of demand topping EUR1.25bn. More on this one can be found here
** The ECB released its latest CSPP update on Monday where the central banks revealed it holds EUR81.044bn of corporate securities as of 21st April. The latest data points to an implied daily purchase rate of EUR296m which marks the slowest rate year-to-date. See IGM's ECB CSPP REVIEW
IGM European Credit Weekly
** The IGM European Weekly Credit Excel Spreadsheet 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 data sets including distribution stats, book sizes, NICs and secondary market performance
IGM/EPFR Weekly Cheat Sheet in Excel
** The 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
Tuesday's supply prospects
** EFSF, the European Financial Stability Facility (Aa1/AA/AA) is preparing to launch a new EUR May 2027 benchmark and tap its outstanding EUR1.5bn 1.7% Feb 2043 bond via BNP Paribas, J.P. Morgan and UniCredit
** The European Bank for Reconstruction and Development (EBRD), rated Aaa/AAA/AAA is taking IoIs for a USD 3yr Global benchmark at m/s -4 area IPTs via BNP Paribas, BofA Merrill Lynch, J.P.Morgan, and TD Securities. For more including relative value analysis see earlier IGM SSA PREVIEW
** UniCredit Bank AG hired BayernLB, DZ Bank, LBBW, Nord/LB and UniCredit to lead manage a EUR 9yr Hypothekenpfandbrief Benchmark line which is expected to be rated Aaa/AAA by Moody's/Fitch, whilst away from the single currency Deutsche Pfandbriefbank AG has hired BayernLB, Citi, Deutsche Bank, DZ BANK and Goldman Sachs to lead manage a USD 3yr Mortgage Pfandbrief transaction which is expected to be rated Aa1 by Moody's. For more on these including the official comps list see IGM's COVERED SNAPSHOT
Broader market developments on Monday
** Result of first round French Presidential election reignites European risk sentiment as Independent Centrist Macron and far-right Le Pen make it to the run-off vote on 7th May, French assets outperform, Gold unwinds haven bid, dropping to two-week low
** CAC40 hits post-recession peak, touching its highest level since Jan 2008. Financials lead charge in Stoxx600. Banking index (SX7P) surges 4.66% at best, to highest level since Dec 2015
** EUR/USD bounced as much as 2.24% to a fresh YTD high on the French election result, before paring best gains
** Govvies - OATs and higher beta peripherals shine, outperforming regional peers with PGBs leading the way. 10yr BTPs hit a fresh contract high but lag peripheral peers. 2yr OAT/Bund yield spread narrows to fresh YTD low. Gilts and Bunds underperform, yield on latter rises as much as 10.9bps in 10yr space as Eurozone break-up fears ebb, markets re-position
** ITraxx indices tighten significantly. Both Main and Crossover touch new series tights.
Market snapshot (15.21 BST)
SXXP +2.0% / SX7P +4.65%
OAT 2yr -11.2bps at -0.440% / 10yr -7.6bps at 0.849%
GER 2yr +10.1bps at -0.705% / 10yr +9.5bps at 0.344%
EUR/USD +1.5% at 0.0169
Brent -0.52% at USD51.69
iTraxx Main -6.9 at 68.0 / Crossover -19.8 at 272.7
What to watch Tuesday
** Data: Watching UK public finances with PSNB (ex-banking groups) seen widening to GBP3.1bn from GBP1.8bn. Across the pond, US New Home Sales form key highlight, although sentiment and activity data is also out
** Events: Watching ECB bank lending survey in absence of any central bank speakers in run up to Thur's ECB meeting
** Supply: Germany is looking to allot EUR4bn via 2019 bonds, and the Netherlands EUR2-3bn via 10yr DSLs. Across the pond, the US has USD26bn 2yr Notes up for grabs
** Earnings: 18 Stoxx600 and 45 S&P500 companies report, former includes Swedbank. Some self-led supply could follow.
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