EIB

Standard & Poor’s placed 15 eurozone sovereigns on CreditWatch with negative implications on Monday. Six of those countries, including Austria, Germany and the Netherlands, are rated triple-A.

Anything but euros worked for top-flight sovereign, supranational and agency issuers in the MTN market this week, as instability in both the banking and sovereign sectors rocked equity and CDS markets.

Sovereign supranational and agency Australian dollar supply and deal sizes suffered from unfavourable market conditions this week as worries over whether a second Greek bailout could be agreed helped to drive volatility and reduced domestic investor participation.

The EIB continued its run of Nordic currency-denominated supply with a tap of its 2017 Nkr bond yesterday. The deal is symptomatic of growing interest in high grade paper in those currencies, said bankers.

KfW printed a spate of large trades in dollars and sterling this week. Although the borrower is offering low levels at the short end, volatility surrounding the foreign exchange swap allowed investors to buy the borrower’s paper at more attractive levels.

Institutional investors focused on the long end of the Swiss franc curve this week ahead of upcoming sovereign, supranational and agency redemptions, which lead the European Investment Bank and Bank Nederlandse Gemeenten to tap well received outstanding deals.