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Monday's primary highlights

** The primary market started the week on the front foot where all asset classes contributed to the EUR6.35bn priced. That came as a raft of borrowers made the most of the shortened issuance window ahead of the Thursday's Ascension day Holiday which many issuers/investors are expected to bridge into the weekend. See IGM DAILY EUR NICS & BOOKS

** The busy start to the week also followed a very active primary market last week which produced the third biggest weekly tally of 2017 (see chart below)

** The corporate market hit the ground running on Monday as a constructive tone in broader risk markets saw five IG issuers offer a combination of new benchmarks and taps of outstanding deals. For more see IGM CORP SNAPSHOT

** The covered market was also in the spotlight largely thanks to a well-flagged debut dual-tranche EUR2.5bn 7/15yr Dutch covered benchmark from inaugural issuer Rabobank, while Sparebanken Sor Boligkreditt also chipped in with a EUR500m 5yr Norwegian covered bond. See IGM COVERED SNAPSHOT

** In FIG, Sampo plc printed a EUR500m 7yr senior fixed, its first euro senior deal since November, which landed 15bps inside IPTs and was covered >3 times). Credit Mutuel Arkea began conducting investor calls for an inaugural senior non-preferred (n/g EUR500m fixed 7yr). Secondary spreads were generally tighter but last week's batch of deals were still mostly wide of reoffer. See IGM FIG SNAPSHOT

** The only benchmark SSA supply of the day came courtesy of The Export-Import Bank of Korea (KEXIM), which priced a EUR750m May 2022 issue at m/s +40bps from a m/s +45a starting point. That was thanks to books in excess of EUR800m. There is more supply to come Tuesday (details below)

** ECB data showed purchases via the CSPP as of 19th May 2017 totalled EUR86.932bn, pointing to an implied monthly purchase rate of EUR7.54bn. For more see ECB CSPP REVIEW



Tuesday's expected supply

** FMO (AAA/AAA) working EUR500m no grow 6yr Green at m/s +low/mid teens via CACIB, HSBC, JP Morgan and Rabobank

** Belgium (Aa3/AA/AA-) expected to launch EUR Jun 2037 OLO via Barclays, Morgan Stanley, NatWest Markets and SG CIB

** Kommunekredit (Aaa/AAA) potential EUR 10yr Green via CA CIB, HSBC and SEB

** Jyske Bank (A-) could launch a EUR500m no grow 3yr floater via BNP Paribas, DZ Bank, JP Morgan and LBBW

** KfW (Aaa/AAA/AAA) hired BAML, Nomura and RBC to lead a USD 3yr Global at m/s +3 area IPTs

** OKB (Aa1/AA+) working GBP Mar 2022 at UKT +48 area IPTs via Barclays, Deutsche Bank and RBC



Weekly data reports

** 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: 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


Monday's broader market developments

** EU risk markets retain gains seen towards end of last week but struggle to make material progress in either direction

** EUR/USD continued rising after Chancellor Merkel said Euro was too weak. Pair hit highest level since 9th Nov

** Oil bulls retained upper hand in wake of Saudi optimism on output cut extension ahead of OPEC meeting (Thu)

** Govvies: German curve bear steepens. Portugal outperforms on improved financial position while Greek yields drop as EU's Dijsselbloem expressed confidence Eurogroup would resolve difference to release EUR6bn aid tranche

Market snapshot (15.55 BST)

SXXP -0.05% / SX7P -0.18%

GER 2yr +0.7bp at -0.691% / 10yr +2.0bps at 0.385%

Brent +1.01% at USD54.15

iTraxx Main -0.4 at 62.9 / Crossover -0.5 at 252.9


What to watch Tuesday

** Data: German IFO forms the highlight of the day (both indices seen firmer), alongside flash Eurozone PMIs where the pan-EZ Manufacturing index is forecast weaker at 56.5 (prev 56.7), while Services is seen steady at 56.4. German Final Q1 GDP should match the flash estimate at 0.6% QoQ. Also watching French sentiment indicators, UK PSNB (ex-banking groups) and CBI Retail Reported Sales. Across the pond, watching Prelim Markit Manufacturing and Services PMIs, New Home Sales and Richmond Fed Mfg Index

** Events: Central bank speakers consist of ECB's Coeure (16.00), Fed's Brainard (00.00), Evans (02.10), Kashkari (14.00/20.00) and Harker (22.00)

** Supply: GE to sell EUR5bn 2019 Schatz (10.30), UK to sell GBP850m 0.125% 2036 Gilt Linkers (10.30) before attention shifts to USD26bn 2yr US Notes (18.00)

** Earnings: 5 Stoxx600 and 2 S&P500 companies report with over 95% and 94% having already reported in the current cycle


SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


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