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 highlights

** It was a measured start to the new week/quarter on Monday where only a modest EUR1.25bn priced in Euros via three separate deals. For more info on the trio of deals, including the pricing steps see IGM's DAILY EUR NICS & BOOKS

** The slow start follows an active week last week where EUR35.675bn priced in the single currency (IG+HY), easily surpassing the prior week's total of EUR21.62bn. For the breakdown of last week's paper see the IGM WEEKLY VOLUME REPORT

** Credit Agricole Public Sector SCF was one on those to hit the screens Monday, with the borrower refreshing its Euro Obligations Foncieres curve with a new EUR500m Aug 2027 deal which landed at m/s +3 from a +7 area IPTs on the back of demand topping EUR1bn. This equated to some economic funding for the issuer with the deal appearing to price slightly through its existing curve. For more including relative value analysis see the IGM COVERED SNAPSHOT

** The only other benchmark deal Monday was a EUR500m 4yr Social Bond from Instituto de Credito Oficial (ICO). ICO printed the deal at SPGBs +8 from a +10 area IPTs starting point. Elsewhere, Nederlandse Waterschapsbank N.V reopened its 0.75% Oct 2041 issue for EUR250m at m/s +13 to bring the new outstanding amount to EUR1.625bn

** KfW announced that it has lifted its 2017 funding requirement to EUR75-80bn, from EUR75bn previously, having already raised circa EUR39bn via long term benchmark bonds so far this year. For more info see earlier IGM SSA PREVIEW

** FIG, the week kicked off with a blank as markets fell further into the shadows of the summer slowdown. Secondary spreads were generally tighter compared to Friday's levels, suggesting that last week's material rise in yields was yet to generate a significant shift away from FI exposure via the FIG complex. See IGM FIG SNAPSHOT

** Corporate borrowers also stayed away on Monday, following a robust week for issuance last week where the asset class saw its busiest week since the week ending 19th May with a total of EUR13.95bn printing, spearheaded by a EUR3.5bn 3-parter from Volkswagen Leasing GmbH. (see distribution stats here). For a look at this the corporate pipeline and our secondary market performance trackers, see IGM's CORP 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 potential primary issuance

** EFSF, the European Financial Stability Facility (AA/Aa1/AA) has hired Citi, Commerzbank and SG CIB as joint lead managers for its upcoming dual-tranche transaction of new 8yr and 31yr EUR benchmark bonds.

** Dexia Cr�dit Local (Aa3/AA/AA-) is taking IoIs for a new GBP 5yr line at UKT 4% Mar 2022 +low 70s IPTs via Barclays, Deutsche Bank and HSBC

Monday's broader market developments

** EU risk assets extend rally as US players enter the market, buoyed by firmer oil and surge in financial stocks. Price action follows 4-day losing streak on Stoxx600

** EZ Jun final Markit Mfg PMI upgraded to a 74-month high at 57.4 (flash 57.3) UK equivalent fell 2-pts to 54.3 while US ISM Mfg rises to 35-month high at 57.8 (from 55.3)

** Brent continues to recover, on course for 8th straight day of gains having posted an over 3-week high intraday

** Govvies � 10-30s BTP and PGB curves bull flatten, EGB yields head south despite risk-on in equities. Periphery outperforms core

** iTraxx indices tighten, both Main and Crossover respect Friday's high and low

Market snapshot (14.41 BST)

SXXP +0.87% / SX7P +2.1%

GER 2yr -1.4bps at -0.604% / 10yr -0.8bp at 0.455%

Brent +0.98% at USD49.25

iTraxx Main -0.9 at 55.5 / Crossover -1.7 at 246.7

What to watch Tuesday

** Data: Light European agenda sees Spain report June Unemployment figures, UK June Markit/CIPS Construction PMI, while Eurozone reports May PPI

** Events: Watching ECB's Praet (13.30) and Nowotny (17.30). Riksbank announces latest policy decision, presser to follow (08.30/10.00)

** Supply: Austria to sell EUR1.265bn worth of 2027 and 2047 RAGBs and Germany to sell EUR500m worth of 2030 Linkers

** Holidays: US out for Independence Day

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: