Currencies

US covered bonds could fill the triple-A rated void left by the sovereign's downgrade

Less exuberance in bookbuilding and secondary widening follows primary market onslaught

Market participants anticipate borrowers dipping below US govvie benchmark

◆ Large size, zero NIP achieved ◆ Historically low spread to US Treasuries ◆ Secondary performance despite tight pricing

Owner InfraBridge has plans for expansion and upgrades

◆ Finnvera joins dollar party in primary ◆ Attractive levels and lack of supply boost demand ◆ Another German issuer brings 10 year euro paper

◆ Small benchmarks hit screens ◆ Demand solid but muted ◆ Market prepared for cooling off period after rampant few weeks

◆ PBB opts for four year deal ◆ Marginal drops as German issuer tightens spread ◆ Investors appreciate the room for performance

◆ Fair value debated ◆ Some question RV attractiveness to global investors ◆ Dollars main funding market ‘for now’

◆ New senior FIG deals print with mid-single digit concessions... ◆... though Belfius offers more for its largest non-preferred funding since 2020 ◆ M&A target Monte dei Paschi prints year's first deal

◆ ADB, KBN, OeKB price bonds ◆ Spreads to Treasuries in the spotlight ◆ Big books for all

◆ First euro and social combo since 2022 ◆ Deal follows another MDB five year ◆ Market capable of absorbing similar deals