France

The first two days of this week saw more than €10bn of bond issuance, with more than a quarter of that volume made up of three deals sold by auto finance issuers. All three deals managed to achieve new issue premiums of 10bp or less, which was tighter than the majority of deals the week before.

German media company Bertelsmann pulled a €500m seven year corporate bond issue on Thursday as the market showed signs of indigestion after what was already one of the busiest weeks of the year for corporate issuance.

When the euro corporate market attempted to return to full speed after a pause on Wednesday, investors were given a tough choice between three triple-B rated issuers all selling seven year bonds and another selling a sub-benchmark five year tranche. The result was a bad one for issuers.

In a document recently circulated at EU level, Paris labelled the MiFID II equivalence regime “inappropriate”, and called for a tighter procedure — a clear move to limit UK funds’ access to EU markets after Brexit.

The euro bond market should spring back into life next week, with a pair of quiet weeks safely in the rear view mirror.

Société Générale has hired a veteran derivatives trader as its head of equities and equity derivatives.

This week's funding scorecard looks at the process French agencies have made in their funding so far in 2018.

A syndicate of 17 banks was mandated to help French shopping centre operator Unibail-Rodamco raise €3bn with four tranches of senior bonds this week. The deal came two weeks after the company sold €2bn of hybrid bonds and completes the funding for its takeover of Australian shopping centre operator Westfield.

On Wednesday, a syndicate of 17 banks was mandated to help French shopping centre operator Unibail-Rodamco raise €3bn with four tranches of senior bonds. The deal came two weeks after the company sold €2bn of hybrid bonds.

Natixis has appointed François Riahi as its new CEO.

Abeo, the French producer of sports and leisure equipment, has issued its first Euro private placement note. The rarity of the sector, as well as the small intended volume, meant the leads could push for tighter pricing and more attractive terms.

Credit Mutuel CIC issued the widest 10 year French covered bond of this year on Monday, reflecting higher net supply in 2018 compared with previous years and less central bank buying activity. But with net supply set to fall, spreads should soon stabilise.