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Tuesday's primary market highlights

** The primary market burst into life on Tuesday with 13 euro lines pricing for a combined EUR14.65bn. That was more than double the EUR6.89bn which priced in the whole of the prior week (IG+HY). For a breakdown of Tuesday's deals see IGM DAILY EUR NICS & BOOKS

** The flip-side of the recent lean spell is that investors clearly have cash to go to work, something evidenced by the generally substantial order books on Tuesday's trades. That was just as well given the growing pipeline (see below for Wednesday's prospects). For a look at how volumes and supply/demand dynamics have developed in recent weeks see IGM/EPFR Weekly Cheat Sheet

** The famine to feast scenario was perhaps best reflected by the corporate sector where five issuers printed a combined EUR2.5bn, which is more than the asset class saw in the last three weeks combined (EUR2.1bn). Investor interest was strong where, excluding the booksize for Kellogg's SEC-registered EUR600m 5.5yr, combined demand stood at over EUR7.75bn which resulted in minimal NICs ranging from negative 2 to +5bps across the quintet of deals. For more on the day's issues from Kellogg, Repsol, ABB Finance, WPP Finance and Hella see the IGM CORP SNAPSHOT

** In FIG, Deutsche Bank sold its first senior euro FRN in a year while Intesa SanPaolo became the fifth issuer to sell a euro AT1 deal in 2017. The latter was a blowout, landing 50bps inside IPTs and over 5 times covered, mopping up unsatisfied demand from Sabadell's AT1 launched on Friday. See IGM's FIG SNAPSHOT

** The covered market saw RBS and CFF pull the trigger on dual tranche (EUR+GBP) and 7yr euro lines respectively with the day's euro trades more than twice covered. See IGM COVERED SNAPSHOT

** SSAs contributed over 51% of the day's euro supply with EIB, NRW Bank, Bpifrance and KFW raising a combined EUR7.5bn on the back of demand exceeding EUR15.3bn. See IGM's SSA PREVIEW


Wednesday's potential primary supply

** After holding an investor call on Tuesday via Barclays, BayernLB, Erste Group, Raiffeisen Bank International and UniCredit, Vorarlberger Landes- und Hypothekenbank AG (VORHYP) may pull the trigger on a EUR500m 7yr Hypothekenpfandbrief (Mortgage Covered Bond) which is expected to be rated Aa1 by Moody's

** De Volksbank N.V. has mandated Barclays, HSBC, Natixis and Rabobank as joint-lead managers for a EUR500m 10yr (soft bullet) covered bond transaction, backed by Dutch prime residential mortgages and rated Aaa/AAA by Moody's and Fitch

** Agence France Locale (AFL) rated Aa3, has hired BNP Paribas, Citi and Commerzbank to lead manage a potential EUR500m 7yr (June 2024) issue

** Finnvera (Aa1/AA+) may go live with a EUR 15yr benchmark via Citi, Deutsche Bank and Goldman Sachs

** German Federal State of Berlin (Aa1/AAA) is prepping to re-open its 0% Dec 2024 issue for EUR250m via DekaBank, HSH Nordbank and UniCredit. Current outstanding is EUR250m

** Export Development Canada (EDC), rated Aaa/AAA, is taking IoIS for a USD 5yr Global at m/s +high single digit IPTs via BofA Merrill Lynch, BMO Capital Markets, Citi and RBC Capital Markets

** Swedish Export Credit Corporation (SEK), rated Aa1/AA+ is working a USD 3yr Global benchmark at m/s +10 area IPTs via Citi, Mizuho, NatWest and TD

** Council of Europe Development Bank (Aa1/AA+/AA+) is taking IoIs for a USD1bn (no grow) Global benchmark at m/ -4 area IPTs via BNP Paribas, Morgan Stanley, Nomura and SG CIB


Tuesday's broader market developments

** European risk assets edged higher during Tuesday's session, following a brief blip on Monday. Stoxx600 touched its best level since early Aug 2015 and the DAX post a fresh record high

** Govvies - bears were in the driving seat on the back of risk-on in equities, pushing EGB yields higher across the board as supply pressures also weighed with a chunky EUR14.65bn taken out of the investment grade primary market on Tuesday alone. That saw German and French curves bear steepen, while the periphery broadly underperformed the core region but with gilts the weakest link in the 10yr space

** Brent started on the front foot before pulling back in the run up to Tuesday's API inventory data, putting it on course to end two straight days of gains and remain below the psychological USD50 handle for a 4th day running

** iTraxx indices post fresh series tights, before coming off best levels

Market snapshot (15.00 BST)

SXXP +0.46% / SX7P +0.25%

GER 2yr -0.2bps at -0.684% / 10yr +2.1bps at 0.434%

Brent -0.91% at USD48.89

iTraxx Main -0.8 at 62.5 / Crossover -4.9 at 251.5


What to watch Wednesday

** Data: France and Italy both report Industrial Production figures for March with the former seen rebounding, while the latter is expected to slow on a MoM basis. There is no top tier data out in the US.

** Events: Watching ECB's Draghi as well as Fed's Rosengren (17.00) and Kashkari (18.20)

** Supply: Portugal hopes to raise EUR1-1.25bn via 2022 and 2027 PGBs, Germany EUR3bn via 2022 OBLs before attention shifts to the US where there are USD23bn 10yr Notes up for grabs

** Earnings: 29 Stoxx600 and 8 S&P500 companies report. Former includes Mediobanca and UniCredit - some self-led supply could follow



SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


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