EFSF shows it’s all about timing

If ever there was an example of how much timing matters in the bond market, it was the European Financial Stability Facility’s dual tranche trade this week.

  • By Craig McGlashan
  • 06 Jul 2017
Email a colleague
Request a PDF

Bringing in a chunky book of over €6.6bn for a €3.5bn July 2048 — alongside €2.5bn of July 2025 paper — on Tuesday was an excellent demonstration of the opportunities afforded by the rise in rates over the last week. (See story on page three).

But with govvie yields spiralling further, the French sovereign suffered on Thursday as it drew weak demand during an auction for a bond of a similar tenor — perhaps indicating that investors feel long end government bonds have more value to give up than gain.

Timing, of course, is not really a luxury sovereigns have with their auctions — France picks its bonds a week in advance.

Many in the market reckon yields could hit a ceiling before long, with some suggesting that the European Central Bank may act to temper the growing expectation of QE tapering. It was just the opposite of that that started the rout last week, of course.

If rates do settle next week, then this week's issuance shows that borrowers with a need for some long end funding would do well to bring trades sooner rather than later. And not just in euros — as the Inter-American Development Bank proved a week ago, the 10 year part of the curve in dollars is also open.

With September set to be as busy as ever and a myriad of macroeconomic risks on the horizon, it would also be wise to stay open for syndication during the summer.

  • By Craig McGlashan
  • 06 Jul 2017

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 24 Jul 2017
1 Citi 253,106.92 930 8.89%
2 JPMorgan 230,914.50 1036 8.11%
3 Bank of America Merrill Lynch 221,389.46 762 7.78%
4 Goldman Sachs 171,499.26 554 6.03%
5 Barclays 169,046.60 646 5.94%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Jul 2017
1 HSBC 27,039.93 106 7.36%
2 Deutsche Bank 25,125.19 81 6.84%
3 Bank of America Merrill Lynch 23,128.33 61 6.29%
4 BNP Paribas 19,315.94 110 5.26%
5 Credit Agricole CIB 18,706.93 106 5.09%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Jul 2017
1 JPMorgan 13,488.13 59 8.47%
2 Citi 11,496.21 73 7.22%
3 UBS 11,302.86 45 7.09%
4 Morgan Stanley 10,864.95 59 6.82%
5 Goldman Sachs 10,434.21 54 6.55%