The GC View

Social bonds have long been the poor cousin of green bonds. A smaller, less well organised market.
This week’s burst of covered bonds was exceptionally well received and boosted supply hopes. But even though the funding was cheap and deal execution certain, the supply outlook remains grim.
Few deals have ever had €75bn of orders. Spain managed to lose that much, but still have €55bn remaining in the book. This is the world the ECB’s purchase programmes have built.
The European Central Bank’s bond buying programme is, for better or worse, the saviour of the corporate bond market, keeping access open for most issuers for all but a few days last year. But the easy money for borrowers big enough to access the bond market is inadvertently twisting the screws on already battered small and medium sized enterprises.
Comment
Jean will be gone
Europe's merry-go-round for senior bankers jerked forwards last week. Most dramatically, Jean Pierre Mustier is leaving UniCredit: he will not stay beyond April 2021, the end of his current mandate. The French chief executive disagreed with board members over strategy, and in particular whether the bank should concentrate more on Italy.
Comment
Cruises, Lush and Industry
Leader
Is UniCredit a solution to Italy's problems?
Mustier can leave with head held high
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