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Senior Debt

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◆ 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
FIG
Higher new issue premiums make deals shine amid market volatility
Citigroup and Wells Fargo hit positive post-Fed market with a $18bn salvo
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  • Bank of China returned to the offshore renminbi bond market after nearly two years of absence on Monday, finding around two times the demand needed to close a Rmb1bn ($157m) deal.
  • FIG
    Perky credit markets on Tuesday morning brought little joy to FIG syndicate bankers, who said that few issuers were contemplating a deal despite the strong backdrop.
  • FIG
    Markets shrugged off reports that burden sharing for senior bank bondholders had been discussed in a recent Eurogroup meeting but bankers were nevertheless expecting a quiet week ahead for primary FIG deals.
  • Industrial Bank of Korea turned to the dollar bond market this week to refinance a Samurai bond that is falling due.
  • FIG
    Lloyds TSB this week repurchased £4.9bn of its own senior unsecured debt, having exceeded the cap on its euro and sterling tender offer and achieved a 46% participation rate on the US dollar one. The bank said the deal helped re-price its senior curve, and reinforced the message that it had strong liquidity.
  • FIG
    FIG investors say bail-in rules will increase the division between strong, highly rated banks and smaller, less creditworthy institutions, according to a JP Morgan survey. Respondents also do not believe bail-in will make the financial sector more stable.