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

Wednesday's primary highlights

** The primary market remained active on Wednesday where another EUR3.85bn printed in the single currency, bringing total weekly volume up to EUR16.72bn. For the breakdown of Wednesday's trades, see IGM's DAILY EUR NICS & BOOKS

** Corporates again dominated, pricing EUR2.8bn (72.73% of total supply) courtesy of BP Capital markets and Safran which printed respective EUR1.5bn and EUR1bn two-parters, whilst Rikshem added EUR300m via a 7yr line. Demand remained robust with books finishing up at a combined EUR7.2bn. For more see IGM CORP SNAPSHOT

** The sole SSA visitor to Euros was Land NRW which extended its LSA curve with a new EUR750m Jun 2048 which landed at m/s +19 from a +21 area starting point. This provided some economic funding for NRW with the final NIC pegged at negative 1bp. Elsewhere SFIL printed a debut 3yr dollar deal at m/s +33 with books at over USD1.8bn. For more including RV analysis, see earlier IGM SSA PREVIEW

** In FIG, Deutsche PBB AG pulled the trigger on its Euro T2 10NC5 to follow a roadshow which commenced Monday. Demand proved a little underwhelming at EUR400m+ with the deal sized at the minimum EUR300m while the spread was tightened by a modest 5bps during execution. Secondary FIG spreads held in well though despite the softer tone in adjacent markets. See IGM's FIG SNAPSHOT


Thursday's potential supply

** RATP (Aa2/AA) is taking IoIs for a EUR500m no grow May 2027 Green bond at OATs +mid 30s via Credit Agricole, HSBC and Natixis

** BNZ International Funding Limited hired Commerzbank, Deutsche Bank, HSBC and National Australia Bank to lead manage a EUR 7yr covered benchmark issue which is expected to be rated Aaa/AAA (Moody's/Fitch)


Wednesday's broader market developments

** EU risk assets pare worst losses as oil recovers. CAC40 leads equity decline

** Italian bank stocks rallied after Intesa Sanpaolo made a conditional offer to buy some assets from Banca Popolare di Vicenza and Veneto Banca. Helps FTSE MIB outperform sharply


** Brent gets close to posting fresh YTD low on oversupply concerns before rebounding. That's after the contract hit its lowest level since 15th Nov on Tuesday. See IGM Viewpoint: Oil market rebalancing complications keep adding-up

** Govvies retreat. Gilts lead sell-off as 2/10 curve bear flattens (2yr UKT yield +7.4bp, 10yr +3.7bp at 15:51 BST) after UK BoE's Haldane made a u-turn - a perceived dove to hawk � sees risk of H2 2017 move once (Brexit) 'dust settles'.

** GBP surges against both EUR and USD on Haldane remarks but fails to take out Tuesday's intra-day highs

** iTraxx indices move in tandem with equities, both Main and Crossover move further away from Tuesday's fresh series tights - although are off their intra-day wides

Market snapshot (15.32 BST)

SXXP -0.17% / SX7P -0.11% / FTSEMIB +1.24%

GER 2yr +1.5bp at -0.648% / 10yr +1.1bp at 0.269%

Brent +0.22% at USD46.12

iTraxx Main flat at 55.8 / Crossover +1.2 at 234.1


What to watch Thursday

** Data: Sentiment indicators are out in Europe in the shape of French Consumer and Manufacturing Confidence, which are both seen steady in June, as well as Eurozone flash Consumer Confidence which is seen less negative. UK reports latest CBI Trends Orders

** Events: ECB publishes Economic bulletin. Also watching BoE's Forbes (19.00)

** Supply: UK to sell GBP2.25bn 2047 Gilts (10.30)



SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


Recommended Articles

  • IGM Credit, IGM FX and Rates

    IGM Launches Daily Quant-Based Trading Ideas with IGM G10 FX Playbook

    21 Jan 2021

    Boston, MA – (January 21, 2021) – IGM, a subsidiary of Informa plc (LSE: INF), a leading provider of solutions for financial services professionals, has launched the IGM G10 FX Playbook, offering financial institutions actionable analysis and talking points for client and in-house currency market trading strategy.

    Topics Industry News

  • IGM Credit, IGM FX and Rates

    China Insight: A return of focus to credit clean-up in 2021

    14 Dec 2020

    Concerns over China corporate credit risk have come to the forefront since the beginning of Q4, highlighted by three high-grade issuers' defaults: 1. AAA-rated Huachen Auto Group (onshore), 2. AAA-rated Yongcheng Coal & Electricity Group (onshore), 3. AAA-rated Tsinghua Unigroup (offshore) Coincidentally, all of these three issuers are state-owned enterprises (SOEs) in nature. This, to a certain extent reflects central government's bias in favour of a return to policy normalisation and possibly a second round of financial deleveraging (following the first round in 2017). Chart 1 shows that China's total debt to GDP ratio may have reached as high as 290% by the end of this year, so there is a need for deleveraging regardless of the defaults YTD being smaller than those in the previous two years both in terms of the total number and the total size of events (chart 2). From the perspective of the policymakers, with various kind of economic activities having returned to their pre-COVID levels, a return of the focus to credit clean-up should be more beneficial to long-term economic development... 

    Topics Industry News

  • IGM Credit, IGM FX and Rates

    China Insight: Slower and bumpier RMB appreciation in year ahead

    07 Dec 2020

    There is good chance China will be the only major economy in the world to generate positive GDP growth (around 2%) in 2020 due largely to its effective pandemic containment measures and consequently the faster recovery of the production and consumption. As far as the FX is concerned, RMB has been appreciating against USD since the beginning of June on the back of broad-based weakness of greenback (chart 1). Besides, RMB has also been appreciating against all EM Asia currencies (except KRW) since USD's multi-month downtrend kicked off in early-summer. We attribute the RMB's outperformance relative to the rest of EM Asia to growing hopes of a victory of Biden in the 2020 presidential election, who's obviously far less hostile to China and promised to remove the existing tariffs on China in case he becomes the next US president...

    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: