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IGM Global Credit Issuance Trends - Q1 2022

European primary market supply more than doubled in Q1 where all sectors (except HY Corporate) contributed to an upswing that came in the face of rising volatility, surging yields and record euro-area inflation which heaped more pressure on the ECB to wind back stimulus. Higher volumes also came despite several weeks of subdued activity which followed Russia's invasion of Ukraine on 24th February which then depressed volumes until the final couple of weeks of the quarter. Standing out the defensive covered bond market responded impressively to demand for lower risk paper where volume jumped by 3.42x versus Q4

In APAC US$71.26bn of regional IG supply (excl. Japan) managed to get over the line in Q1 2022, the highest volume quarter since Q2 2021. In contrast APAC US$ high yield supply dwindled to just US$3.592bn in the quarter. Issuers had to offer sufficiently attractive spread compensation to persuade cautious investors to part with their cash, particularly in March. That is illustrated by the average new issue concession (NIC) of close to 9bp that APAC non-Japanese IG issuers paid to fund in the quarter

US IG ex-SSA issuance for Q1 came in at US$463.8bn. Demand statistics hinted at the volatile broad market conditions over much of the quarter, while showing continued strength in investor interest. Average NICs jumped to 8.46bps, the highest since Q2 2020 whilst coverage ratios rose to 3.46x

Issuance Trends - Q1 2022

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