The sluggish start to European corporate bond issuance this week was dashed from sight today as GE Capital and three European companies launched hit deals, with substantial tightening in spread guidance. Demand from investors for corporate paper is as hot as it has been at any time since June.
GE Capitals £625m 7.5 year deal was the largest, but Bouygues, Alstom and Finnish nuclear power generator Teollisuuden Voima all sold benchmark euro bonds.
The market strength has taken everyone by surprise, said one syndicate banker. The Street is very light of inventory so when the market is hot