Corporate heavyweights test depth of market

The big hitters of the corporate bond markets — car, telecom, and utility firms — are lining up one new bumper issue after the other this week, as borrowers move to take advantage of a sharp rally in spreads. But while most deals priced so far have come flat to issuers’ curves, a weak secondary market performance of a Eu1.5bn BMW seven year tranche from Monday was one of several indicators that investors are becoming more cautious and selective. Bankers predict that new issue premiums may yet make a comeback, as the market keeps a close eye on deals for Vodafone and RCI Banque expected on Wednesday. Read EuroWeek on Friday for more.