Euro

Turk Eximbank has taken to the road for a non-deal roadshow in London, meeting with international investors to discuss the institution’s credit, alongside three other emerging markets borrowers.

Italian government bond yields jumped around as jittery investors digested another day of conflicting messages from the country’s government, ahead of an expected announcement on the 2019 budget later on Thursday. But even if the deficit plans meet investors’ hopes, there may not be a large BTP rally, said SSA bankers.

A stream of low-rated US borrowers in euros could continue to flow this year, said market participants, consolidating these reverse Yankees as the second largest sector for euro high yield bonds.

French certification agency Bureau Veritas had its credentials stamped by investors on Thursday when it sold its third deal in three years. The unrated issuer received €1bn of demand for its €500m long six year deal.

Unédic drew large demand for its first 10 year euro benchmark of the year on Wednesday, allowing the issuer to considerably tighten its spread through pricing.

Turk Eximbank has taken to the road for a non-deal roadshow in London, meeting with international investors to discuss the institution’s credit.

US asset manager Pinebridge is positive on credit markets in the short to medium term, but the outperformance of assets in the past three years has increased the probability for a credit downturn according to a recent report it published.

Unédic will bring a 10 year euro benchmark on Wednesday that SSA bankers are confident will avoid the fate of some of last week’s deals at that point of the curve.

Kommunalbanken has delayed its green bond benchmark comeback, following its first Kangaroo issue in the format last month.

Eutelsat, the French satellite operator, would have been hoping for similar conditions to the previous week when it announced an investor call ahead of its first corporate bond deal in more than two years. The atmosphere had changed however by the time the deal was marketed on Tuesday.

German publishing company Bertelsmann returned to the euro corporate bond market on Tuesday to remarket a deal it had pulled in May after setting the spread. This time the issuer priced the transaction, but it had to pay a much larger new issue premium than others have done on recent deals.

Agence France Trésor will increase its use of short-term debt markets after France’s growing deficit — outlined in a government budget statement on Monday — resulted in a nearly €30bn increase in its financing requirements.