Bank Nederlandse Gemeenten

A trio of issuers brought deals across the short end of the dollar curve on Wednesday, adding to what one SSA syndicate head described as the “ideal January”. Supply looks to have dimmed for now, with no deals on screen for Thursday and Chinese New Year holidays next week likely to halt benchmark issuance, but bankers believe conditions are so hot that arbitrage deals or floating rate notes could still break through.

While many of the main euro issuers have already scored their big January benchmarks, the pipeline of euro issuance is growing increasingly congested, although the range of maturities on offer should allow borrowers to avoid treading on each other's toes.

This week's funding scorecard looks at the progress European supranationals and agencies have made during the first three weeks of the year.

The UK Debt Management Office has picked the maturity and timing for a scheduled bond sale later this month. Elsewhere in sterling, a pair of issuers added deals to a bumper opening week that fell just short of a record.

Four sovereign, supranational and agency borrowers came to market for euros in the opening week of 2017, showcasing the market’s depth and flexibility. But the torrent of supply has meant that issuers haven’t had it all their own way.

Searing conditions in the sterling market could lead to a record opening week of SSA issuance in the currency as a pair of issuers lined up deals for Friday — despite this only being a four day week.

SSA borrowers have wasted no time in approaching the primary market this year and the early pipeline appears strong. But as buoyant as conditions appear, there was evidence to suggest investors will not be buying everything thrown their way at any old price.

Rating: Aaa/AAA/AA+

Violent volatility as bond investors adapted to a new rates landscape following the election of Donald Trump as US president quelled demand for public sector paper this week, with one issuer understood to have opted against bringing a planned deal. There is hope that calm will return in time for the January funding rush — but some fear the president-elect represents a continuous risk to market harmony.

High volatility in the wake of Donald Trump’s shock win of last week’s US presidential election is likely to halt supply of euro or dollar deals for the next few days, said bankers.

Bank Nederlandse Gemeenten is set to hold investors calls for what will be its first sustainability bond to be denominated in dollars.

Euro issuance this week is very much focused on long dated bonds, with Bank Nederlandse Gemeenten printing a 20 year syndication on Monday and other European agencies and sovereigns looking to tap the long end of the curve via auctions.