BNP Paribas

Four issuers launched covered bonds from Germany, Sweden, Norway and Austria this week. The transactions were all well subscribed and priced tightly but the greatest degree of price tension was seen in deals that are expected to be eligible for the European Central Bank’s purchase programme.

The Grand Duchy of Luxembourg paid a clear premium over its conventional curve to sell a €200m inaugural sukuk this week. But this concession was down to the small size and not the sukuk structure, said debt bankers involved. A much bigger problem with the debut deal was Islamic investors’ lack of familiarity with just how measly euro rates have become.

Tele Columbus — Travelport — Lindorff — Certeum

Bayer, the German pharmaceutical and chemical company, braved the toughest credit market conditions of 2014 this week to complete its biggest bond deal, as investors lost their appetite for risk.

Aéroports de Paris seized the opportunity presented by slightly stabler markets on Wednesday morning to price a €500m 10.5 year bond with what one banker said was its lowest ever coupon on such a long bond.

Bonds newly issued by Polish chemicals firm Synthos had traded down more than two cash points by early this week, with some bankers blaming the deal execution and warning that the trade might have hurt the chances of other Polish firms wanting to access the market. Bankers on the deal defended the sale, saying the issuer had set a very ambitious price target.

Infra Foch, a new company formed to purchase French car park operator Vinci Park, has mandated banks for a European bond roadshow next week.

Tele Columbus, the German cable television operator, has today unveiled a €500m refinancing loan, which comes to the market two days after the company launched an IPO.

Aéroports de Paris seized the opportunity presented by slightly stabler markets today to price a €500m 10.5 year bond with what one banker said was its lowest ever coupon on such a long bond.

Exor, a principal holding company of the Agnelli family, which founded Fiat, on Wednesday issued its first bond since 2007. Despite shaky market conditions, the 10 year bond attracted ample demand, helped by the fact that it offered about 150bp of spread — not available every day on investment grade paper.

Fast money and pure volatility investors were seen selling volatility through a 60bp straddle trade on iTraxx Main as credit volatility reacted sharply to events this week.

Wesfarmers, the diversified Australian retail, chemicals, energy and insurance group, attracted a €1.2bn book for its seven year bond on Tuesday, allowing it to increase the size from an expected €500m to €600m while still paying a new issue premium of 5bp or less.