Euro
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After more than a week-long absence of senior bank issuance in euros, the Nordic financial demonstrated that longer maturities are open for stronger names -
Investors show less inclination to buy longer tenors from smaller names
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Multiple borrowers are expected to rush into the primary market when stability returns. This may hinder slower and smaller issuers
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Issuer benefited from its credit strength and rarity in primary markets
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The US inflation release is expected to be the turning point and restart senior bank deals in Europe
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But demand was considerably below its debut offering
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Closely watched long dated tranche strong enough to command €37bn of orders
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The Finnish deal offered a substantial premium over benchmark sized deals
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New plan should be designed in a way to avoid splintering eurozone banks
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The two deals will provide a helpful gauge of demand for other issuers in central Europe
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Senior bank bonds are expected to pay at least 10bp of new issue concession
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Demand for the Dutch green debut was four times greater than for BSH’s Pfandbrief
