Corp Bonds - Swiss franc

Intense demand in the Swiss franc bond market for any asset with a positive yield — or even anything yielding more than the penal negative rates on cash — gave a varied group of issuers this week execution that pushed the boundaries — bigger, faster and tighter.

A pair of investment grade issuers made rare appearances in niche currency bond markets this week. Deutsche Telekom returned to the Swiss franc market after a 10 year absence, while Hitachi Capital UK made its debut in rand.

The Swiss franc bond market has had a roaring start to the year, which bankers suggest may be a sign Swiss investors are switching from equity to debt. This week’s standout trades came from Hyundai Capital, National Australia Bank and Chilean financial services company Tanner, while Münchener Hypothekenbank sold a first green Swiss franc bond on Thursday.

The Swiss franc primary bond market enjoyed a week of notable firsts, new records and diversity this week across the corporate, cantonal and financial institutions sectors.

Switzerland’s largest private and commercial vehicle leasing company starred in an otherwise quiet market for Swiss franc issuance this week.

When the Mont-Soleil solar power plant went into operation in early 1992 it was not just the first of its kind in Switzerland: it was the largest photovoltaic installation in Europe.

Well over Sfr1bn ($1bn) of Pfandbriefe and covered bonds was printed within three days this week, rounding off what bankers say turned out to be a surprisingly good first half of the year for the Swissie market.

Activity in the FIG sector in Swiss francs shifted from the international to the domestic market this week, with a little over Sfr850m ($857m) of new supply priced on Tuesday alone.

Korea Railroad Corp turned west on Monday, marketing a six year bond to Swiss investors.

It has been a lively start to the second quarter of the year in Swiss franc bonds, marked by geographical diversity in the international sector and a welcome appearance from an industrial borrower in the domestic market.

Swiss franc investors leapt headlong into the Brexit turbulence on Thursday morning, giving a solid reception to the first Swissie deal of the year from a UK corporate borrower.

The virtual drought in international corporate issuance in the Swiss franc market belatedly came to an end on Tuesday in spectacular fashion, when BMW launched a speedily executed two-tranche issue for Sfr600m ($600m).