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

** Primary supply accelerated on Tuesday where EUR8.57bn printed in the single currency via 13 separate tranches, up from EUR4.6bn on Monday. For the full breakdown of Tuesday's supply and the pricing steps of each deal see the IGM DAILY EUR NICS & BOOKS

** Corporate borrowers British Telecommunications plc and Coentreprise de Transport d'Electricit� (CTE) led the way with both issuing three-tranche deals which totalled EUR2.3bn and EUR2.92bn respectively. Demand for the six tranches was strong with combined books topping EUR17.1bn which allowed the spreads to be tightened by 17.33bp on average (from IPTs to reoffer). For more including relative value analysis on these and a recap of Monday's issues see IGM's CORP SNAPSHOT

** The covered sector was the busiest in terms of number of issuers with Aegon Bank, UniCredit Bank, The Mortgage Society of Finland and HYPO NOE Gruppe Bank AG all battling it out for attention in Euros. The quartet brought a combined EUR1.45bn adding to the EUR2bn which had priced in the asset class on Monday. That means last week's EUR2bn haul has already been topped in just 2-days. For more on Tuesday's covered transactions, see the IGM COVERED SNAPSHOT

** In FIG, BNP Paribas headlined supply with a debut EUR750m 7yr fixed rate German regionally targeted senior non-preferred transaction. The deal was met with a warm investor response with books of over EUR2bn (180+ accounts) allowing the borrower to pull pricing into a final m/s +70 from a +80 area IPTs starting point. Elsewhere Arion Bank HF refreshed its senior curve with a EUR300m 3yr line at m/s +88. See IGM FIG SNAPSHOT


Wednesday's potential primary supply

** Land NRW (Aa1/AA-/AAA) on Tuesday hired BAML, Goldman Sachs and JP Morgan to lead manage a new EUR 31yr LSA transaction

** SFIL, the 100% publicly owned, French leading local Government and Export Agency, rated Aa3/AA/AA- (Moody's/S&P/Fitch) is taking IoIs for a debut USD 3yr benchmark line at m/s +mid 30s IPTs via BNP Paribas, HSBC, JP Morgan, Nomura and SGCIB

** Safran, the Unrated French supplier of systems and equipment for aerospace, defence and security may pull the trigger on a potential EUR benchmark floating rate dual-tranche senior bond transaction with maturities of 2-4yrs after conducting investor meetings last week via Deutsche Bank and Natixis as global coordinators and joint bookrunners together with MUFG and Santander as joint bookrunners

** Italian state-owned railway infrastructure company Ferrovie dello Stato Italiane SpA (BBB-/BBB) may go live with a one or two tranche EUR benchmark deal with a maturity/maturities in the range of 5-12yr after a roadshow last week via Credit Agricole CIB, Deutsche Bank, J.P. Morgan and UniCredit


Tuesday's broader market developments

** EU risk assets started off on the front foot before weaker oil saw stocks retreat and trade slightly underwater, bar CAC40

** Brent succumbed to selling pressure, hitting a fresh YTD low and its weakest level since 15th November. Price move in line with broader commodity sell-off, excluding some metal. Brent now entering bear market territory, see strategy note here

** Govvy yields decline broadly across the board, 30-yr Spanish and Italian yields touched fresh multi-month lows but PGBs erase earlier gains with yields pushing higher. Gilts lead core bonds higher as Bank of England's Carney says now is not the time to raise interest rates

iTraxx indices tighten, hitting fresh series tights, before coming off lows

Market snapshot (14.38 BST)

SXXP -0.21% / SX7P -0.56%

GER 2yr +1.2bps at -0.657% / 10yr -0.3bp at 0.274%

Brent -2.20% at USD45.88

iTraxx Main -0.1 at 55.6 / Crossover -0.1 at 231.8


What to watch Wednesday

** Data: Watching latest UK PSNB (ex-banking group) figures and US Existing Home Sales

** Events: Watching BoE's Haldane (12.00)

** Supply: Look out for any pressure on Bunds going into the EUR1bn 30yr (2044) Bund auction


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: