Euro

Even those who had expected a soaring end to the year have doubts after zero issuance so far

◆ Barclays’ bumper senior print proves euro market wide open ◆ US downgrade unsettles sentiment ◆ Dollars still the cheaper market

Data centre companies will need to finance the expected vast new infrastructure

Already more big deals than last year, but numbers pale against recent averages

Issuance just shy at this point of most recent year with more than €320bn in bond sales

A more benign backdrop tipped to entice riskier credits into trades

◆ 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