skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Monday's primary market highlights

** The partial European Whit Monday Holiday meant that the European primary market was devoid of any deals across all currencies at the start of the week. This comes after EUR supply totalled EUR22.22bn last week, just shy of EUR23.075bn the week before. For the breakdown of last week's supply see IGM WEEKLY VOLUME

** Whilst corporates offered no paper on the day, State-owned Chinese power company China Three Gorges Corporation added its name to the sparse pipeline, hiring leads to conduct a roadshow starting Tuesday ahead of a possible intermediate tenor EUR-denominated Green Bond which will be issued via its subsidiary Three Gorges Finance II (Cayman Islands) Limited. For more on the rest of the corp pipeline and our secondary market performance tracker, see IGM's CORP SNAPSHOT

** FIG issuers also stayed sidelined on Monday although with last week's issues going well it is likely that at least one or two issuers will go live with new deals on Tuesday (see below) as they look to make the most of the small issuance window ahead of the UK Elections and latest ECB meeting which both take place Thursday. Elsewhere, shares in Spain's Banco Popular were down again amid further concerns of a potential wind-up. For more on this and a recap of last week's issuance see IGM's FIG SNAPSHOT


IGM Credit Excel spreadsheets

** 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


Tuesday's primary prospects

** Sumitomo Mitsui Financial Group Inc (A1/A-) held investor meetings last week and may bring a 5-10yr fixed and/or floating rate notes via Goldman Sachs, SMBC Nikko, Barclays, BNP Paribas and HSBC

** American International Group Inc (Baa1/BBB+) also held a roadshow last week via Barclays, BNP Paribas, Citi and HSBC and could pull the trigger on a SEC-Registered 10yr senior line which would mark the longest outstanding senior deal in the single currency from a US Insurer, according to IGM's database

** Unrated agricultural commodities giant Louis Louis Dreyfus Company BV may go live with a USD Reg S offering after conducting an investor roadshow last week via ABN Amro, HSBC, J.P Morgan and Natixis


Monday's broader market developments

** EU risk assets were biased weaker Monday, while Whit Monday holiday in parts of Europe resulted in light volume trade. Limited market reaction to UK Services PMI miss, while final Eurozone version beat

** Brent heads south for second consecutive day, dipping below the psychological USD50 mark albeit following a brief rally after Saudi Arabia and three other Arab countries cut ties with Qatar, raising prospects of supply disruptions

** Govvies - 10-30s EGB curves mostly bear steepen, bar SPGBs and Gilts. PGBs underperform, pushing 30yr spread vs Bunds out by 5.5bps to a one-week wide

** iTraxx indices go their separate ways, Main widens a tad while Crossover hovers near Friday's series tight. Both indices trade in narrow ranges

Market snapshot (15.06 BST)

SXXP -0.16% / SX7P -0.15%

GER 2yr 1.6bps at -0.720% / 10yr +1.6bps at 0.286%

Brent -1.38% at USD49.26

iTraxx Main +0.4 at 62.4 / Crossover -0.2 at 248.8


What to watch Tuesday

** Data: UK BRC Retail Sales YoY are seen turning negative in May. Eurozone Sentix Investor Confidence is seen steady, while Retail Sales are expected to soften a tad in April. US JOLTs is the only release out across the pond (est 5738, prev 5743)

** Events: None scheduled

** Supply: Austria to sell 2023 and 2027 bonds, UK to sell GBP2.5bn 2022 Gilts and Germany EUR500m 2026 Linker

** Looking further ahead to Thursday: UK 2017 Election Viewpoint - polls apart, uncertainty may be down to the wire


SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


Recommended Articles

  • IGM Credit, IGM FX and Rates

    China Insight: Implications of CGB Inclusion in The WGBI

    By Tim Cheung 25 Sep 2020

    As widely expected, FTSE Russell on 24 Sep in the New York afternoon announced that China Government Bonds (CGBs) will be included into the World Government Bond Index (WGBI), effective Oct 2021. Major investment banks estimate that CGBs would receive a weighting of around 5.7% in the WGBI. Assuming AUMs benchmarked to WGBI index is around USD2.5tn, the inclusion would result in USD142bn inflows to the CGB market. Assuming the phasing-in will last for 20 months, same as the time frame set for Bloomberg Barclay's Global Aggregate Index inclusion, CGBs will receive USD7bn inflows per month as a result of WGBIs month-end rebalancing. Once included, China will become the second highest-yielding country in the WGBI (chart 1), which should be very appealing to yield-seekers.

    Topics Industry News

  • IGM Credit, IGM FX and Rates

    The Context 09.21.20

    21 Sep 2020

    Read more from The Context and subscribe to have it delivered to your inbox each week!

    Topics Industry News

  • IGM Credit, IGM FX and Rates

    China Insight: Liquidity Remains Tight, Despite Sizeable MLF

    By Tim Cheung 21 Sep 2020

    PBOC on 15 September conducted a CNY600bn 1-year medium-term lending facility (MLF), more than enough to roll over the same type of facility (sized at CNY200bn) that expired in the same week. Despite the rate being unchanged at 2.95%, the facility size was large enough to stir up speculation over a possible re-emergence of a looser liquidity environment before and after the upcoming Golden Week holiday. However, what actually happened over the rest of the week suggested the surprisingly large MLF operation was mainly aimed at supporting market sentiment before the CGB auction held on 16 September. As soon as the auction was wrapped up, PBOC immediately showed its reluctance to let liquidity go any looser again. On 17 Sep, PBOC only conducted a small-sized 7-day OMO reverse repo, resulting in a re-emergence of net liquidity withdrawal.

    Topics Industry News

;

Any questions? Speak to a specialist

Would you like to request sample data or analysis from Informa Financial Intelligence? 

See how our tailored solutions can help you gain a competitive advantage: