Euro

Investors' wariness around high beta credits is not showing in the primary market

◆ Deal hits size and price targets ◆ Starting spread catches investors' attention ◆ Small pick up offered over OATs

Average new issue concessions a fraction of what they were a year ago despite almost double the volume being priced

◆ New investors drawn to RBC euro FRN ◆ NatWest gains from lots of liquidity ◆ Market is 'keen to rally' ahead of US election slowdown

◆ Investors pull orders after sharp tightening ◆ Familiar structure offers 'nothing groundbreaking' ◆ Other rival bankers say deal went 'absolutely well'

◆ Three banks show keen desire to close strategic capital deals before November ◆ 'Outsized bid for high beta' continues to drive buyers to tightly priced capital ◆ Belfius prices in euros and SEB goes for dollars

◆ Large order book as rates curve lures buyers ◆ Double 'scarcity' value also a factor ◆ Bankers debate new issue premium

IG corporate buyers awash with cash on the lookout for opportunistic euro trades

◆ French govvie performance to support sentiment ◆ Recent French covered bonds spotted tighter ◆ Fair value considerations revealed

◆ Friday execution seen as precursor of issuers' keenness to print before US vote ◆ Handelsbanken issues rare green tier two with no new issue premium ◆ Swedbank comes close to fair value, if not a touch above, in first euro senior non-preferred of 2024

More Friday deals a possibility as volumes are expected to pick up after the US election

Bund-swap spreads are heading to uncharted territory with little to stop them, which could cause a headache for SSA issuers