Euro

Despite prevailing bleak sentiment from expensive Pfandbrief issuers, the market is bracing for the reopening of the long end of the market

◆ Interest rate expectations power demand for higher yielding bonds, duration in covereds ◆ Synthetic indices tighten to fresh 12-month low ◆ Market in rude health for January issuance

Hundreds of billions due for refinancing but expected lack of new opportunities makes this less daunting

French agency to front-load issuance next year as conditions remain ‘hard to predict’

Issuer to bring six syndicated benchmarks across euros, dollars and sterling in 2024

Rally in corporate credit shows no sign of abating as central banks meet

◆ ECB repayments to influence banks’ covered and SP issuance ◆ But TLTRO repayments less important than this year ◆ Large pre-funding could mean lighter January supply

Bank analysts agree that Bund ASWs will tighten in 2024

IG corporate investors mostly dread central bank missteps, according to BofA survey

◆ End of year slow down exacerbated by caution ahead of major central bank decisions ◆ Sentiment stays strong albeit some dents after strong US economic data forces changes in rate cut expectations ◆ European banks send RFPs for January issuance

Only premier corporates expected to print in remaining days

IG companies’ premiums have halved, according to the Primary Market Monitor