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

Tuesday's primary highlights

** The primary market remained buoyant on Tuesday where another nine transactions printed for a combined EUR16.8bn, spearheaded by Jumbo deals from Spain and KfW (more on those below). Tuesday's bumper total means that we have already seen more supply this week (EUR22.9bn) than in the whole of last week (EUR21.62bn). For information on the nine EUR deals to price Tuesday including pricing steps, see our newly formatted IGM's DAILY EUR NICS & BOOKS report

** The headline issue of the day was Kingdom of Spain's syndicated EUR8bn Oct 2027 deal on the back of blowout demand of over EUR28.9bn. The extremely enthusiastic investor response allowed Spain to print at m/s +70 from a +mid 70s IPTs starting point, which equated to some economic funding for the borrower with the trade appearing to price inside Spain's existing curve

** KfW refreshed its well-stocked global Euro curve with a EUR5bn Oct 2024 line at m/s -28. Books on this one topped EUR7.55bn. For relative value analysis on the KfW & Spain trades, see earlier IGM SSA PREVIEW

** In FIG, the focus was on the higher beta end of the capital structure where HSBC Holdings Plc took advantage of the ongoing search for yield with a EUR1.25bn PNC12 AT1 which was 4X covered. See IGM's FIG SNAPSHOT

** Gecina became the latest IG corp to price a three-part issue comprising a EUR500m 7yr floater and 10/15yr fixed rate issues which were also EUR500m apiece. Demand was strong at over EUR6bn, allowing the spread on each tranche to be tightened 22bps during execution. Elsewhere, Deutsche Bahn returned to the Sterling market after a near 4yr hiatus. See IGM CORP SNAPSHOT

Wednesday's primary supply prospects

** Agence Fran�aise de Developpement (AA/AA) is preparing a EUR 15yr benchmark via Barclays, Citi, Goldman Sachs International and Natixis

** Bank of Queensland may pull the trigger on a EUR500m no grow 5yr Conditional Pass Through Covered Bond via BNP Paribas, Commerzbank, ING, National Australia Bank and UBS Investment Bank. The issue is expected to be rated Aaa/AAA (Moody's/Fitch). For the official comps list, see Monday's IGM COVERED SNAPSHOT

** After the conclusion of an investor roadshow last week via JP Morgan, MUFG, Santander and PKO BP, Polish electricity company Tauron Polska Energia S.A (BBB) is readying a EUR500m no grow 10yr bond. See preview here

** Swiss Re (via Demeter Investments BV) mandated BNPP, Citi, CA CIB, CS, HSBC, Lloyds and UBS for a USD PNC5 subordinated fixed spread for life transaction. The deal is expected to be rated BBB+ by S&P

** Raiffeisen Bank International AG could launch a EUR AT1 benchmark via BNP Paribas, BofA Merrill Lynch, Citi, Raiffeisen Bank International and UBS Investment Bank. A PNC Dec 2022 is expected

Tuesday's broader market developments

** Upbeat/hawkish Draghi lifts EUR and yields, dents stocks

** EUR/USD touches fresh 2017 peak

** 10yr Bund yield rises over 9bps to multi-week high

Market shapshot (15.42 BST)

SXXP -0.63%

GER 2yr +4.3bp at -0.592% / 10yr +9.2bp at 0.334%

Brent +2.38% at USD46.92

iTraxx Main +1.2 at 54.7 / Crossover +4.6 at 237.8

What to watch Wednesday

** Data: UK Nationwide House Prices are forecast to rise 0.1% MoM in June but YoY growth is seen decelerating to its slowest pace in four years at just 1.9%. French Consumer Confidence is expected to hit its highest level since July 2007 as the consumers' glass remains half full. EC M3 Money Supply is seen remaining within the 4.5% to 5.3% range that has prevailed for the past two years

** Events: The 3-day ECB Forum concludes where President Draghi will have the opportunity to fine tune his more hawkish message delivered to markets on Tuesday should it be deemed necessary

** Supply: No term supply from Europe while US sells 2yr FRNs (USD13bn) and 7yr notes (USD28bn)

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

Recommended Articles

  • IGM Credit

    China Insight: From Peking Founder to MPA loosening

    20 Feb 2020

    China Insight: From Peking Founder to MPA loosening

  • IGM Credit, IGM FX and Rates

    The Context 02.18.20

    18 Feb 2020

    Inside this week’s edition of The Context, Financial Intelligence thought leaders discuss: The JPY Week - Bias is Bearish Has the impact of coronavirus now peaked? We say such talk is premature and an underlying bid Usd/Jpy will continue to slow into 110.00-plus. Euro FIG Snapshot: Virus Protection Fully Operational With the recovery in risk assets extending into a second week, more issuers emerging from blackout and the credit market's virus protection evidently up to date, the pace picked up in the non-covered primary FIG market last week. Equities Ignore, Hope … Euro Indicates Slowing EMU Economy It doesn’t take much to light a fire under equities, but it is going to take much more to push bond yields higher... 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: Credit Bonds Will Play Catch up on More Supportive Measures

    By Tim Cheung 18 Feb 2020

    The authorities, MOF, PBOC and CBIRC, hosted a joint conference on Feb 7 to provide an update on supportive policies in light of the coronavirus situation. We believe the conference delivered a loosening bias tone as a nimble response to the virus outbreak. Next move following the huge liquidity injection and provision of first batch of special relending funds to more than a dozen of banks is going to be an LPR cut on 20 Feb. We expect a 10bp cut in both 1-year and 5-year LPRs on 20 Feb (chart 1), similar to the magnitude of the latest OMO rate cut. A more sizable cut may mean the policymakers are opting for more aggressive monetary easing to cushion the economic shocks arising from the coronavirus outbreak.      

    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: