Citi

Storming conditions in dollars this week led to a series of blow-out deals — but a large amount of supply in the last two weeks, plus uncertainty over the outcome of upcoming European elections and what the European Central Bank will do at its next meeting could mean that issuance conditions won’t be red hot for much longer. Those problems could also affect euros — where issuers considering deals at the 10 year part of the curve have the added difficulty of offering a sufficiently enticing yield.

Two Mexican financial institutions are meeting the buy-side ahead of the potential dollar issues as the country’s issuers continue to enjoy optimum issuance conditions thanks to strong bond markets and the reform agenda driving popularity with investors.

After weeks of enjoying near-perfect funding conditions with bulging order books and extravagant spread tightening, two high-grade corporate borrowers on Monday received a jolt from investors as pricing power appeared to evaporate. Normal service was soon resumed however, and by Thursday Telecom Italia was able to end its five year absence from the dollar market with a $1.5bn 10 year deal that offered investors a perfect combination of novelty and yield.

Profit taking has taken a toll on the periphery this week, but even as Italy’s government bonds continued to take a beating on Wednesday and the market for subordinated FIG debt softened, Italian insurer Poste Vita took to the market with a tier two capital transaction at a level that showed investors are still receptive to new deals.

After a long string of covered bond syndication success stories this year, demand showed signs of wavering on Tuesday when Landesbank Hessen-Thueringen (Helaba) issued a tightly priced two tranche Pfandbrief.

SEB will sell sub debt on Thursday afternoon, drawing good demand for a tier two deal despite offering aggressive pricing. The Scandinavian bank will be joined by French insurance company Groupama which is exchanging perpetual sub debt for new paper.

China’s Huawei Technologies launched a $1bn revolver into the European market on May 19 as it aims to expand its funding sources away from Asia.

Pertamina has opened guidance on a long-awaited new bond, a 30 dollar year issue, almost two months after meeting investors. Bankers said the meetings were part of a non-deal roadshow, but investors have nonetheless been expecting a launch for some time.

Banca Inbursa, the Mexican commercial bank owned by Carlos Slim’s family, will begin a roadshow on Friday ahead of a planned 144A/Reg S bond.

Profit taking has taken a toll on the periphery this week, but even as Italy’s government bonds continued to take a beating on Wednesday and the market for subordinated FIG debt softened, Italian insurer Poste Vita took to the market with a tier two capital transaction at a level that showed investors are still receptive to new deals.

China’s Huawei Technologies launched a $1bn revolver into the European market on May 19 as it aims to expand its funding sources away from Asia.

Shanghai Pudong Development Bank made its debut in international bond markets on Thursday with an Rmb1bn ($162m) bond. With strong anchor orders building a solid foundation and good orderbook momentum, dealers were able to tighten pricing by 27bp.