Euro

August is traditionally a slow month in the corporate bond market as the common perception is that many market participants are away from their desks enjoying their summer holidays. But recent deals have shown that investors are around, and are willing and able to buy.

This week's funding scorecard looks at the progress French agencies have made in their funding programmes in the middle of the third quarter.

The funding for KKR’s acquisition of BMC Software is set to add almost $2bn of high yield bonds in euros and dollars this week, the last portion of a cross-border, multi-billion debt deal that has enlivened the leveraged finance markets.

The investment grade corporate bond market started August with a pair of transactions that supported the positive tone of the market. Primary market participants are still in positive mood, but are yet to see any further deals announced.

Greece’s planned return to the 10 year part of its euro benchmark curve is likely to be in late August or early September, according to market sources.

BTPs sold off on Friday morning ahead of the Italian government’s crucial 2019 budget review, with yields reaching their highest level in two months.

There were various approaches to assessing the fair value of World Bank’s €750m August 2034 trade this week, its first euro benchmark in almost two years.

Rating: Aaa/AAA

World Bank returned to the euro benchmark market for the first time since October 2016 on Wednesday, amid an attractive euro/dollar basis swap for dollar funders.

The World Bank has chosen leads to run a euro benchmark that will be the first from the borrower in nearly two years.

Rating: Aa1/—/AAA

Investor appetite is returning to the short end of the euro SSA curve, with yields rising as the European Central Bank weans issuers off its asset purchase programme.