Euro

The Dutch State Treasury Agency will clear its interest rate swaps at the clearing arm of German derivatives bourse Eurex, it was revealed on Tuesday.

The US corporate bond market has enjoyed strong new issuance volumes in the last two weeks, while the European market has been much quieter. But in emerging from two weeks shortened by public holidays, Europe is preparing to close the gap.

A solitary syndication from KfW broke the otherwise placid waters of the public sector debt market on Wednesday.

A syndicate of 17 banks was mandated to help French shopping centre operator Unibail-Rodamco raise €3bn with four tranches of senior bonds this week. The deal came two weeks after the company sold €2bn of hybrid bonds and completes the funding for its takeover of Australian shopping centre operator Westfield.

German car company Daimler raced from one side of the Atlantic to the other this week to raise €6.7 equivalent from 10 tranches of bonds with tenors from two to 10 years.

Ever since European Central Bank president Mario Draghi announced corporate bonds were to be included in the central bank’s quantitative easing programme, there has been a cacophony of dissenting voices debating the rights and wrongs of the policy. Yet no one seems to be talking about the biggest concern as the end of QE nears: the valuation of bonds the policy has affected.

On Thursday, German car manufacturer Daimler made its second visit to the corporate bond market with a €2.25bn dual tranche offering. This followed a $4bn seven tranche issue on Monday.

A solitary syndication from KfW broke the otherwise placid waters of the public sector debt market on Wednesday.

On Wednesday, a syndicate of 17 banks was mandated to help French shopping centre operator Unibail-Rodamco raise €3bn with four tranches of senior bonds. The deal came two weeks after the company sold €2bn of hybrid bonds.

Engine manufacturer Rolls-Royce returned to the European corporate bond markets on Wednesday after a break of nearly five years. The British company sold a €1.1bn dual tranche deal which extended its maturity profile in euros.

The Islamic Development Bank has set the roadshow schedule for its euro benchmark.

Investment grade corporate market participants are all aware that the European Central Bank’s bond buying programme will come to an end in 2018. The pace of that buying slowed in April, but the cash that investors are holding is proving to be an easy replacement for the central bank’s support.