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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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  • FIG
    Intesa Sanpaolo stuck to a defensive three year tenor for its return to the senior market on Tuesday, joining ING, which priced a deal in the same part of the curve, and Raiffeisen Bank International, which launched a five year bond.
  • Philippine investment bank First Metro Investment Corp plans to sell up to Ps7bn ($165.6m) of peso bonds in July, making its second offering in the domestic debt market in less than a year.
  • FIG
    Société Générale followed in the footsteps of Nordea on Monday, attracting interest with a dual tranche deal similar to the €2.25bn deal the Swedish lender sold on Friday. It was not the only borrower to tap the strong market — Svenska Handelsbanken and Danske Bank were both out with three year bonds.
  • FIG
    Spanish and Italian banks’ senior debt widened sharply this week, even as France’s BPCE found solid demand in its domestic market.
  • Korea Development Bank returned to the international bond market this week with a quick $500m tap of its existing five year notes, allowing the lender to cut its funding costs and raise money to refinance maturing debt.
  • FIG
    Lloyds TSB put on a show of strength on Thursday, announcing a cash tender offer on $21bn worth of euro, dollar and sterling denominated senior bonds, in a move that some bankers say could be a template for banks’ future cash management strategies.