Q3 BondMarker euro focus: long bonds find favour with voters

No fewer than five euro benchmark bond issues achieved an average score of nine or above in BondMarker voting in the third quarter. Voter preference was heavily weighted towards the long end of the curve: four of the five top-scoring deals of the quarter had tenors of 10 years or longer and two were longer than 30 years.

  • By Tessa Wilkie
  • 13 Oct 2017
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The European Financial Stability Facility topped the board with a €3.5bn 1.8% July 2048 that racked up an average score of 9.7. It came close to top marks across the five categories available for scoring on BondMarker: pricing, structure/maturity, quality of the investor book, timing and performance.

That deal — part of a dual tranche effort priced on July 4 — attracted more than €6.6bn of orders and allowed the issuer to print €3.5bn, as well as €2.5bn of an eight year tranche. The eight year gained an average score of 8.5 on BondMarker.bm 1307 2

“They hit the nail on the head — it was a great success,” said a banker away from the deal at the time of pricing.

The long-dated tranche achieved particularly high scores for structure/maturity, investor distribution and timing. Citi, Commerzbank and Société Générale led the deal.

A  100 year effort from Austria, priced on September 12, also found favour with voters. The issue — again part of a dual tranche deal — achieved an average score of 9.2, putting it in third place. The deal was led by Bank of America Merrill Lynch, Erste Group Bank, Goldman Sachs, NatWest Markets and SocGen.

Other long-dated prints that were popular include a €3bn 0.5% September 2027 from Finland, which gained an average of 9.1 out of 10, placing it fourth, and a €5bn 0.5% September 2027 from KfW that scored 9, rounding off the top five.

Barclays, Danske Bank, Goldman Sachs, NatWest Markets and SocGen priced Finland’s deal on August 30, while Citi, HSBC and SG led KfW’s on September 12.

The sole medium term effort to reach the top five was a €1bn 0% September 2022 from KommuneKredit, priced on August 30. It achieved an average score of 9.3, making it the second most popular euro deal on BondMarker in the third quarter. The leads were BAML, Danske, LBBW and SG.

BondMarker provides a quantitative complement to GlobalCapital’s industry-leading bond comments by crowd-sourcing market participants’ opinions.

We ask participants to score deals out of 10 over the five categories available. A deal the voter considered very poor would merit a score close to zero and one they considered a very impressive print close to 10.

We calculate the average total score for each deal by taking the mean of individual votes over the five categories. Each category is equally weighted.

Deals are available to be voted on for one week after they are priced. The votes are aggregated and published at the end of that period.

GlobalCapital published BondMarker scores on 18 euro benchmarks priced in the third quarter. Some deal scores were not published as they did not meet our minimum voting requirements.

  • By Tessa Wilkie
  • 13 Oct 2017

European Sovereign Bonds

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • Today
1 Citi 17,773.39 25 9.05%
2 HSBC 16,094.53 24 8.19%
3 BNP Paribas 14,513.99 21 7.39%
4 Barclays 14,014.48 21 7.13%
5 Goldman Sachs 13,328.33 24 6.78%

Dollar Denominated SSA (Excl US Agency)

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 47,624.49 114 11.86%
2 Citi 45,464.82 116 11.32%
3 HSBC 32,120.98 74 8.00%
4 Bank of America Merrill Lynch 31,796.56 92 7.92%
5 Deutsche Bank 26,169.34 61 6.51%

Bookrunners of Euro Denominated SSA (Excl US Agency)

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 32,369.73 94 7.27%
2 UniCredit 32,160.99 106 7.23%
3 Goldman Sachs 31,301.28 81 7.03%
4 BNP Paribas 30,965.57 63 6.96%
5 Barclays 30,125.25 71 6.77%

Bookrunners of Global SSA (Excl US Agency)

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 85,921.52 293 7.36%
2 JPMorgan 85,692.63 478 7.34%
3 HSBC 75,413.89 256 6.46%
4 Bank of America Merrill Lynch 62,586.52 191 5.36%
5 Barclays 59,041.67 186 5.06%