The Context 10.26.20

European SSA: EU's SURE social draws blowout demand in bumper week

European SSA borrowers had a bumper week, which saw record-breaking order books, in which aggregate demand for the 12 euro tranches came in at an eye-catching EUR370bn for the EUR37.5bn offered. Highlight was the EU’s debut of its SURE Social Bonds.

USD Week: Just 8 days to go!

Just 8 days until polling day and unsurprisingly the DOLLAR is overwhelmingly the G10 FX focus this week. The DXY stays on the relative back foot on a potential Biden election win, 'Blue sweep' optimism and perhaps most significantly to markets reduced fears of a 'contested' outcome.

US IG Primary – Social Distancing

The ESG is getting a lot of support in the States. Year-to-date, we have seen 73 ESG/SRI bonds ("social," "sustainable," "green" bond offerings) come to market, raising $100.88bln in the process, with SSAs accounting for 27 of those deals and $67.7bln of that total. In comparison, 2019 saw 49 deals price totaling $35.513bln, with $8.805bln coming from eight SSA offerings.

CEE FX Viewpoint: CZK may be best placed to rebound if Covid-19 gets under control

After recent CE3 currency underperformance amid resurgent Covid-19 cases, we explore how these new restrictions could impact GDP growth and which of these countries is best placed to rebound when restrictions are lifted again.

Asian FX markets – Priming for a Blue Wave

The prospect of a Blue Wave is clearly a negative USD development, which the market has started to price in more aggressively. Not surprisingly, most Asian currencies are positively correlated with Biden's election odds.