Europe

◆ Friday Italian capital raising completed ahead of potential big issuance next week ◆ Strong market tone drives rise in AT1 bids ◆ Bank marches inside 300bp reset but also through recent Commerzbank spread

◆ Larger-than-usual size ◆ Constructive Friday opening led to three well-received FIG trades ◆ ...of which Alpha may have paid the least NIP

◆ Unusually busy Friday for European bank funding ◆ Small premium, large demand ◆ Meanwhile 10 year OAT-Bund spread breaches 100bp

◆ Market participants await Meta's rumoured euro debut ◆ Carrefour sells first Friday corporate deal since June ◆ Three FIG names hit the market

‘Outstanding year’ of funding overall for the bank in across currencies, €800m left to fund until year-end

◆ Books for debut deal more than eight times covered ◆ Euros part of journey towards being a 'larger, more international company' ◆ Investor interest in defence sector grows

Trade bodies speak out against push to drive equity trading on to lit markets

Spreads to remain broadly stable, but hinge on upcoming issuance volumes and direction of interest rates

Higher new issue premiums make deals shine amid market volatility

◆ Strong conditions seized to print first AT1 in a year ◆ Comes more than a year ahead of next call ◆ Tight valuation, high yield leads to the bank's lowest outstanding reset spread

Analysts see covered bond issuance slowing to a more sedate pace from October through to the end of 2026

French covered bond trading levels have become increasingly divorced from OATs since the start of 2024, offering a golden opportunity to issuers ahead of a likely volatile period