ESM-EFSF

Buoyant conditions on the first proper day of trading after the Christmas break indicate that SSAs are in for a red hot start to issuance next week when as much as €25bn of benchmark issuance could hit screens. But ultra low yields could mean issuers have to cough up when it comes to new issue premia.

The European Stability Mechanism is likely to price at a similar level to the European Financial Stability Facility when it launches its inaugural bond, despite structural differences between the two supranationals, according to analysts.

Supply starved money market funds may have helped the European Financial Stability Facility’s ability to raise a record amount during a syndicated deal on Tuesday, according to fund managers.

The European Financial Stability Facility adopted an innovative approach to tackling a €3.6bn hole in its 2012 funding target on Tuesday — and ended up printing its largest ever syndicated deal. The barnstorming trade pushes the supranational over the finish line for 2012 as well as taking a healthy chunk out of its 2013 needs.

The European Financial Stability Facility’s (EFSF) plans to wrap up its funding work for the year with a three year benchmark were thrown into disarray on Tuesday by Moody’s decision to downgrade France from Aaa to Aa1. The issuer has other avenues through which it can raise the remaining €3.6bn it requires.

The European Financial Stability Facility (EFSF) has mandated JPMorgan, Morgan Stanley and Natixis to lead manage a new three year transaction designed to complete the €3.6bn funding requirement it has remaining for the year.

The European Financial Stability Facility (EFSF) has sent RFPs to banks for ideas on raising the €3.6bn it has left for its 2012 long term funding programme.

The European Financial Stability Facility took a big bite out of the €5.1bn it has left to fund this year with a tap of its 2.625% May 2019s on Wednesday.

The European Financial Stability Facility (EFSF), which has received internal approval to raise the last chunk of its funding for the year, is most likely to plump for a three year deal to raise it, said bankers on Monday. Such a deal could produce its first benchmark reoffered at sub Libor levels.

The European Stability Mechanism is likely to price at close to the European Financial Stability Facility when it launches its inaugural bond, despite having a clearer structure, according to analysts.

The European Stability Mechanism, which has been roadshowing this week in London, Paris and Frankfurt, is expected to receive a warmer welcome than its cousin the European Financial Stability Facility has sometimes managed when it brings a deal.

If a country being touted as a bailout candidate just a few weeks ago can bring a dollar deal through its euro curve with a book nearly five times subscribed, then why aren’t other SSA names and their dealers pushing issuers to be more adventurous with prefunding for 2013?