Euro

◆ Senior holdco deal one of largest order books of the year ◆ Only 10bp-15bp of concession needed to seal €1.25bn deal ◆ Despite the strong outcome, further supply is not a given

Tight overall covered bond spreads mean that new issue premiums appear elevated, despite lower levels

Central banks play nice but a reckoning is coming for corporate spreads

Provinces take a step back from borrowing but pension sector issuers lean forward

◆ Regulator starts collecting data on hedging and accounting of capital instruments ◆ Is AT1 debt or equity? ◆ BNP Paribas’s reclassification of future dollar AT1 provides an example

Clear but non-traditional window opens after central banks stick to plan

Investors seen shifting from equities to bonds to lift fixed income markets

The first batch of European corporate earnings have shown multi-year weaknesses

Tightly trading bonds look ripe to gap wider as conditions expected to deteriorate

◆ Domestic demand supports sale ◆ Public bail-in debut lands in line with peers ◆ Follow-on deals unlikely as blackouts and holidays suppress the pipeline

◆ ‘Novelty’ release reflects overlaps in bank capital requirements and market feedback ◆ New recommendations focus on RAC tier twos ◆ High level of standardisation achieved in the EU

◆ Non-deal roadshows planned for the coming weeks ◆ Issuers tipped to wait despite supportive market ◆ Dearth of supply to support spreads