E.On opens new field of negative yields: how much will investors tolerate?

E.On has opened a new era. While several investment grade companies have printed bonds at negative yields before, few have come close to the -0.149% at which the Baa2/BBB rated German power company reached with the five year wing of its €1.5bn dual tranche deal on Wednesday.

  • By Alex Radford
  • 22 Aug 2019

As the recent rally in benchmark rates ploughs more and more of the bond market into negative territory, further negative yielding notes look likely. Market participants do not know how low rates will go, or what corporate bond investors will put up with.

E.On’s €750m five and 10.5 ...

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All Corporate Bonds

Rank Lead Manager Amount $m No of issues Share %
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1 JPMorgan 109,927.46 548 5.97%
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3 Bank of America Merrill Lynch 96,422.40 491 5.24%
4 Barclays 84,649.13 363 4.60%
5 Goldman Sachs 72,819.63 356 3.96%

Bookrunners of Euro Denominated Corporate IG Bonds

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1 Barclays 25,216.98 68 8.07%
2 BNP Paribas 22,728.81 125 7.28%
3 Deutsche Bank 19,476.33 91 6.24%
4 SG Corporate & Investment Banking 18,780.78 83 6.01%
5 Bank of America Merrill Lynch 18,365.62 60 5.88%

Bookrunners of European HY Bonds

Rank Lead Manager Amount €m No of issues Share %
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1 Citi 5,481.64 30 9.16%
2 JPMorgan 4,195.74 34 7.01%
3 Deutsche Bank 4,163.77 26 6.96%
4 Goldman Sachs 4,037.77 30 6.75%
5 Barclays 3,944.19 26 6.59%

Bookrunners of Dollar Denominated HY Bonds

Rank Lead Manager Amount $m No of issues Share %
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  • 18 Sep 2019
1 JPMorgan 21,330.12 176 9.55%
2 Citi 20,413.19 159 9.14%
3 Goldman Sachs 16,673.77 129 7.47%
4 Bank of America Merrill Lynch 15,858.61 138 7.10%
5 Morgan Stanley 14,415.14 99 6.46%

Bookrunners of European Corporate IG Bonds

Rank Lead Manager Amount $m No of issues Share %
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  • Today
1 BNP Paribas 21,308.46 122 5.89%
2 Barclays 19,922.30 79 5.51%
3 JPMorgan 19,249.64 88 5.32%
4 SG Corporate & Investment Banking 18,623.31 86 5.15%
5 Citi 18,190.86 90 5.03%