BondMarker: Rentenbank’s dollar deal outdoes EFSF in euros

A dollar benchmark from Rentenbank scored comfortably higher than a euro trade from the European Financial Stability Facility in the latest BondMarker results. That is in keeping with a few weeks where the dollar market has been far more resilient than a wobbly euro sector.

  • By Craig McGlashan
  • 19 Nov 2018
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Rentenbank’s $1.25bn November 2023, priced on November 6, scored an overall average of 7.83, with voters particularly impressed in the structure/maturity category, which took 8.17.

“It feels like investors are less worried about a steepening of the curve and are more expecting a flattening, so that means they’re interested in a five year as opposed to a short end trade,” said an on-looking SSA banker at the time.

The deal’s lowest score came in the timing category, although it still took a decent 7.33.

1582 ssa bondmarker results

“I was slightly surprised they brought their sole dollar benchmark of the year this week [commencing November 5] given it’s the mid-terms and there’s a Federal Open Market Committee meeting, but it didn’t seem to make a blind bit of difference,” said a second on-looking banker at the time.

Rentenbank’s high score is in keeping with a dollar market that has been resilient in the face of potential headwinds.

By contrast, several factors — from the end of eurozone quantitative easing to the fallout between Italy and the European Commission over the former’s budget plans — have led to tricky conditions and spread widening in euros.

That took its toll on the BondMarker score for EFSF’s €4bn January 2024, also priced on November 6, which took a low rating of 5.17 for performance and 5.67 for quality of the investor book. That helped drag down the overall average to 6.50.

“EFSF’s deal was fine and had a decent book, it just shows that the euro market is a bit weaker — a couple of months ago EFSF would have got a €10bn book with this,” said an on-looking SSA banker at the time of pricing. The deal took orders of nearly €6bn.

  • By Craig McGlashan
  • 19 Nov 2018

European Sovereign Bonds

Rank Lead Manager Amount $b No of issues Share %
  • Last updated
  • Today
1 JPMorgan 21.72 35 11.83%
2 Citi 14.88 25 8.11%
3 HSBC 14.70 17 8.01%
4 BNP Paribas 13.01 23 7.09%
5 Barclays 12.92 16 7.04%

Dollar Denominated SSA (Excl US Agency)

Rank Lead Manager Amount $b No of issues Share %
  • Last updated
  • Today
1 JPMorgan 38.29 95 11.79%
2 Citi 37.78 93 11.63%
3 HSBC 26.03 61 8.01%
4 Barclays 21.77 48 6.70%
5 Bank of America Merrill Lynch 20.16 75 6.21%

Bookrunners of Euro Denominated SSA (Excl US Agency)

Rank Lead Manager Amount $b No of issues Share %
  • Last updated
  • Today
1 JPMorgan 38.31 89 9.19%
2 BNP Paribas 29.06 74 6.97%
3 Credit Agricole CIB 26.75 76 6.41%
4 UniCredit 25.68 82 6.16%
5 HSBC 25.66 88 6.15%

Bookrunners of Global SSA (Excl US Agency)

Rank Lead Manager Amount $b No of issues Share %
  • Last updated
  • Today
1 JPMorgan 86.59 394 8.16%
2 Citi 67.72 212 6.38%
3 HSBC 65.04 252 6.13%
4 Barclays 54.68 191 5.15%
5 Bank of America Merrill Lynch 49.15 184 4.63%