Investors hoovered up two German hybrid capital issues on Tuesday, in a receptive market spurred on by dovish comments from European Central Bank president Mario Draghi. They were of very different stripes: a €1.5bn dual tranche issue from Merck, the pharmaceutical company, which was about 7.5 times covered, and a £400m issue from Aroundtown, the property company.
There was also a €300m no-grow senior issue by Alfa Laval, which makes heat exchangers, separators, pumps and valves.
“It’s an extremely strong day from a risk asset perspective,” a banker said on Tuesday. “After Draghi’s comments this morning you are seeing a general expectation of additional quantitative easing