Euro
-
-
-
-
The downward spiral of euro periphery borrowing costs on Thursday showed no signs of slowing. For the second month in a row, Italy sold five year paper at a record low yield -
After widening substantially in the run-up to the UK referendum on EU membership, UK covered bonds have now found a base with dealers reporting better buying and analysts recommending overweight positions. Spreads should remain supported, along with those in peripheral Europe, as supply is likely to be very limited over the remainder of this year.
-
Euros had to play second fiddle to a rampant dollar market this week, but there was still a steady flow of deals at the smaller end of the size scale.
-
GE Money Bank in France on Friday offered up extra spread on the subordinate tranche of its €850m French RMBS deal, the first publicly placed deal in the asset class since July 2015.
-
State-owned Bulgarian Energy Holding benefited from a clear run at the CEEMEA primary market this week to print its €550m bond at 375bp over the sovereign curve, according to lead managers.
-
Reviving the UK RMBS market in the aftermath of the country’s vote to leave the European Union is seen as key to maintaining issuance levels in European ABS – but despite steady secondary trading and a market reopening deal, it is far from clear that this is possible.
-
Covered bonds not eligible for the European Central Bank’s covered bond programme (CBPP3) have been sought after in the secondary market, largely reflecting the fact that offers for CBPP3-eligible paper have become almost impossible to find.
-
A stream of dollar issuance over the last few weeks looks like it will keep flowing right into this Wednesday’s US Federal Reserve meeting, after a pair of borrowers mandated on Monday for no-grow $1bn deals.
-
The European Stability Mechanism has chosen to tap its April 2024 line during its funding window this week, a move that bankers said was sensible given the seasonal thinning of liquidity in the market.
