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

** It was a fairly busy start to the week for the primary market on Monday where a total of EUR4.6bn printed in the single currency whilst there was also GBP600m of Sterling issuance. For the breakdown of the day's EUR supply, see the IGM DAILY EUR NICS & BOOKS

** Corporate borrowers were fast out of the blocks with Danaher, Plastic Omnium and Compass Group printing a combined EUR2.1bn with the latter also pricing a GBP300m 12yr line. Demand for the EUR paper was strong which led to sizeable spread compression during execution and thus minimal NICs. For relative value analysis see IGM's CORP SNAPSHOT

** The covered market was represented by Credit Agricole Home Loan SFH and SpareBank 1 Boligkreditt on Monday with the issuers bringing EUR1bn Sep 2024 OFH and EUR1bn 7yr Norwegian covered bonds respectively. Combined demand for the trades stood at over EUR3.2bn. For more see the IGM COVERED SNAPSHOT

** Intesa Sanpaolo's inaugural Green Bond (priced Friday) was bid as much as 10bps inside reoffer as Nordea AB got roadshows underway for its own inaugural Green offering. Deutsche PBB and XL Group also kicked off investor meetings for subordinated transactions while CYBG PLC saw its GBP300m inaugural HoldCo sterling deal covered around 8.7 times. See IGM FIG SNAPSHOT

** The ECB's latest CSPP data revealed that the central bank held EUR93.719bn of corporate securities as of 16th June with the latest data pointing to an implied monthly purchase rate of EUR7.43bn. For more see IGM's ECB CSPP REVIEW


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

** Coentreprise de Transport d'Electricit� (CTE), the holding company for the French electricity transmission operator RTE is preparing to come to the market with a debut three-tranche offering following a roadshow which concluded Thursday via Barclays, BNP Paribas, Credit Agricole CIB, Mizuho Securities and UniCredit. CTE is targeting three benchmark tranches with a long 7yr, 11yr and 15-20yr bond being mooted

** Aegon Bank N.V. has mandated HSBC, ING, NatWest Markets, SG CIB and UniCredit to lead manage a EUR500m no grow 10yr Conditional Pass Through (CPT) Covered Bond which is expected to be rated AAA/AAA by S&P and Fitch

** UniCredit Bank AG has hired Credit Agricole CIB, Danske Bank, Erste Group, Helaba and UniCredit to lead manage a EUR 6yr Hypothekenpfandbrief benchmark. The deal is expected to be rated Aaa/AAA by Moody's/Fitch

** Hypo Noe is expected to tap its EUR 0.5% Sep 2020 Austrian mortgage covered bond (rated Aa1) by EUR200m via Erste Group and Nykredit Markets

** BNP Paribas may pull the trigger on a EUR 7yr German regionally targeted senior non-preferred transaction via BNP Paribas, DZ BANK, LBBW, NORD/LB and UniCredit. The deal is expected to be rated Baa2/A-/A+/AH

** Municipality Finance Plc (Aa1/AA+) is working a USD250m no grow tap of its Feb 2020 floater at 3mL +4 area IPTs via Barclays, RBC CM and Scotiabank


Monday's broader market developments

** EU risk assets take cue from Asian and US markets overnight with equities rallying as Fed rate hike bets get scaled back following Friday's US data misses. Stoxx600 hits 2-week high. No new game changing news Monday, spotlight on Brexit presser due after EU hours

** Brent pares early AM losses, on course for second straight day of gains

** Peripherals outperform, PGBs maintain lead throughout session. OAT yields track core peers higher, despite French President Macron's En Marche winning a large majority in the 2nd round vote of the Parliamentary elections Sunday, giving the govt a strong mandate to push through reforms. Price action follows large OAT outperformance in recent weeks

** iTraxx Main touches fresh series tight

Market snapshot (15.30 BST)

SXXP +0.92% / SX7P +1.39%

GER 2yr +0.8bp at -0.665% / 10yr +1.2bp at 0.285%

Brent +0.51% at USD47.61

iTraxx Main -1.6 at 56.1 / Crossover -5.9 at 232.8


What to watch Tuesday

** Data: No top tier releases out Tuesday. For the record though, German PPI YoY is seen easing in May. Also watching Belgium Consumer Confidence and US Current Account

** Events: Fed speakers consist of Evans (00.00), Fischer (08.15), Rosengren (12.45) and Kaplan (20.00). Also watching BoE's Carney (08.30) and ECB's Costa (09.30)

** Supply: There are no significant term auctions scheduled in Europe or US on Tuesday 20th June


SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


Recommended Articles

  • IGM Credit, IGM FX and Rates

    China Insight: More Small Banks in Trouble as Re-leveraging Underway

    By Tim Cheung 19 Nov 2019

    The health of China's smaller banks has come under pressure as Yichuan Rural Commercial Bank and Yingkou Coastal bank are said to have suffered bank runs in recent weeks amid fears over poor management and liquidity issues. Earlier this year, a rare government takeover of Baoshang Bank and a state rescue of Jinzhou Bank and Hengfeng Bank raised concerns about the underlying health of hundreds of small banks in China. Admittedly, China has entered another round of re-leveraging, albeit a softer one this time. With the fundamental issue of macro leverage unsolved, we expect China's debt-to-GDP ratio, currently in the 290-300% area, to reach 320% by 2025 (chart 1).  

    Topics Industry News

  • IGM Credit, IGM FX and Rates

    The Context 11.18.19

    18 Nov 2019

    Inside this week’s edition of The Context, Financial Intelligence thought leaders discuss: Brl/Mxn Corrects Lower, But Still See Mxn Underperformance in Medium-term Due to Mexico's challenging GDP growth outlook, the reduction of the real rate and lingering risk of credit rating downgrades, we still see scope for Mxn underperformance in the medium-term. Whilst the Brl rally has paused, and for good reason, the arguments we presented for Brazilian economic outperformance remain. Euro Corp Comment: Issuance Slows But it Remains a Seller’s Market It was another active week for the European corporate bond market where another EUR7.455bn printed in the single currency courtesy of eleven issuers (13 tranches). Whilst being a decent total, it did however mark a considerable slowdown from the jumbo EUR11.25bn that hit the tape the week prior. What remained constant though was that there remained plenty of cash directed toward new corporate offerings… The CAD Week - Bias is Neutral to Bearish We get some major releases this week out of Canada, with manufacturing sales, CPI and retail sales being released on Tue, Wed and Fri respectively, but ultimately the most influential topic for the BoC is the ongoing trade war and its effect on domestic industry. Read more from The Context and subscribe to have it delivered to your inbox each week!

    Topics Industry News

  • IGM Credit

    Asia Bond Barometer: Riskier categories still favoured

    14 Nov 2019

    Asia Bond Barometer: Riskier categories still favoured

;

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: