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

** Primary EUR supply totalled a decent EUR4.03bn on Wednesday courtesy of seven separate tranches, whilst there was also a jumbo GBP trade from Annington Funding (more on that in the next bullet). For a breakdown of Wednesday's EUR issuance see the IGM DAILY EUR NICS & BOOKS

** The corporate market sprang back into life on Wednesday, spearheaded by a jumbo liability management exercise from UK company Annington Funding Plc which brought four Sterling tranches totalling GBP2.475bn (combined books ~GBP7.9bn) and a EUR600m 7yr line (books ~EUR3.1bn). The Sterling part of the issue marks the second largest corporate Sterling transaction ever, only falling short of the GBP3bn three-parter from National Grid Gas Finance which printed in Sep 2016. Elsewhere on Wednesday there was a EUR500m 7yr trade from National Grid North America and a EUR350m 5yr from Kedrion which also both attracted strong demand of EUR3.3bn+ and EUR750m+ respectively. For more see IGM's CORP SNAPSHOT

** In FIG, the spotlight was on sub where CaixaBank S.A. got a strong reception for its second T2 trade of 2017 with its EUR1bn 11NC6 trade covered >2.5 times, pricing 25bps inside IPTs and landing with a zero NIP. See IGM FIG SNAPSHOT

** Covered supply on the day came courtesy of ABN Amro Bank NV which reopened its 1.375% Jan 2037 Dutch covered trade for EUR1.25bn, more than doubling the outstanding value of the bond to EUR2.25bn. The tap priced at m/s +17 from a +20 area guidance starting point with books at around EUR1.65bn. See IGM's COVERED SNAPSHOT for more

Thursday's primary prospects

** Bank Nederlandse Gemeenten (BNG), rated Aaa/AAA/AA+, is taking IoIs for a USD 3yr floater at 3mL +10 area IPTs via Barclays, Goldman Sachs and HSBC

** Lietuvos Energija UAB (BBB+), is eyeing an expected EUR200m 7-10yr Green Bond via BNP Paribas and SEB after the conclusion of a roadshow which began last Thursday

** Kyobo Life Insurance Co (A1/A+) may launch a new USD 144A/RegS subordinated capital benchmark issue after holding a series of investor meetings via JP Morgan, Citi, Nomura, and UBS

Wednesday's broader market developments

** EU equities struggle to gain significant traction in either direction as markets await Fed and ECB minutes (due Wednesday evening/Thursday resp), while markets also fall into the shadow Friday's Non-Farm Payrolls

** Brent fails to push towards the psychological USD50 mark, on course for second day of decline. Price action follows a rise in 8 of the last 9 sessions

** Govvies - Gilt curve bear steepens as BoE's Saunders points to rate hike round the corner, while markets also absorb chunky GBP supply (see above). Other EGB yields move in tandem as attention shifts to Thursday's ECB minutes and the prospects of policy normalization

** iTraxx indices sea-sawed, Crossover underperforms Main having touched an almost 1-month wide

Market snapshot (14.43 BST)

SXXP +0.16% / SX7P +0.35%

GER 2yr +1.0bp at -0.614% / 10yr +0.5bp at 0.477%

Brent -0.69% at USD49.27

iTraxx Main flat at 55.4 / Crossover +1.4bp at 248.6

What to watch Thursday

** Data: Light European agenda with German Factory Orders seen rebounding to 1.9% from -2.1%. Across the pond, watching ADP Employment and Jobless Claims ahead of Friday's NFPs. Also watching ISM Non-Mfg Composite, Final Markit Services PMI and Trade figures

** Events: ECB policy minutes (12.30) follow hot on the heels of Wednesday's Fed Minutes. Also watching ECB's Villeroy (06.50), Praet (11.00), Weidmann and Nowotny (17.00) with markets to take note of any further hints on policy normalization

** Supply: Spain to sell EUR3-4bn 2022, 2040 and 2046 bonds, and EUR0.5-1bn 2030 Linkers. France looks to raise EUR7.5-8.5bn via May 2027, Oct 2027 and May 2048 OATs, while UK has GBP2.5bn Gilts up for grabs

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

Recommended Articles

  • IGM Credit, IGM FX and Rates

    The Context 08.03.20

    03 Aug 2020

    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: Politburo Re-affirmed Bias in Favour of Less Dovish Policy

    By Tim Cheung 03 Aug 2020

    Xinhua News Agency reported the Politburo held a meeting on the economy on 30 July (Thursday). The CCP also held a meeting with non-CCP political parties and non-political representatives. President Xi chaired both meetings. Compared to the meeting held on 17 April, we note some changes in wording were made to the remarks on monetary and fiscal policies in the 30 July meeting. 30 July meeting (as per Xinhua News Agency): - "While requiring full implementation of macro policies, the meeting called for pursuing a more proactive and effective fiscal policy that delivers solid outcomes, and a more flexible and appropriate monetary policy that targets sound results, according to the meeting". 17 April Meeting (as per Xinhua News Agency): - "Monetary policies should be more flexible and balanced and instruments such as reserve requirement ratio cuts, interest rate reductions and reloans should be fully leveraged to ensure reasonable and sufficient liquidity and a lower interest rate in the loan market, the meeting said, stressing the need to channel capital into the real economy, especially medium-sized, small and micro enterprises".

    Topics Industry News

  • IGM Credit, IGM FX and Rates

    The Context 07.27.20

    27 Jul 2020

    Read more from The Context and subscribe to have it delivered to your inbox each week!

    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: