A dovish twist from the US Federal Reserve at its last meeting, issuers leaving the earnings blackouts which have hitherto choked supply, and a shot of redemption cash into investor portfolios combined this week to lay down the backing track to a week of hits in the primary market across asset classes.
In FIG bonds, a €1.25bn deal from Rabobank priced through fair value was described by a banker away from it as “a very special transaction”, an epithet that could have been hurled at a number of this week’s bank, corporate and emerging market trades.
Moreover, a revived green bond for OP Corporate Bank will have issuers such as Erste Bank, Van Lanschot, Cajamar and Volksbank Wien licking their lips at the prospect of finally executing delayed subordinated deals.
Europe’s investment grade corporate market was all nectar as buyers gulped down €12bn of bonds, leaving primary sales 29% up on this time last year.
Meanwhile, in the emerging markets, Egypt hauled in a $19.5bn book for its $4bn triple- trancher , Mashreqbank had Asian buyers queuing up, and Mumtalakat and Türk Telekom achieved feats of tight pricing.
Now read on:
Banks resurface as FIG market glows red hot
IG corporate market enjoys stellar week as investors grab risk