France

Natixis has been able to distance itself from other French banks struggling in the fight to remain profitable. But after reporting disappointing first quarter results on Tuesday, the bank’s armour looks to have been dented.

Uncertainty regarding the outcome of the US Federal Open Market Committee’s (FOMC) meeting in June drove public sector borrowers to target the short end of the dollar curve this week, said bankers.

Nexity, the French property developer, was able to increase the size of its second convertible bond issue on Tuesday, as existing investors eagerly bought into the new deal.

Agence France Locale is set to bring its second ever syndication on Wednesday, after unveiling details of the trade on Tuesday.

Public sector issuers are printing at the short end of the dollar curve, a tactic they are likely to stick to in the build-up to the next US Federal Reserve rate decision on June 15, said bankers.

FIG syndicate desks were looking forward to a pick-up in primary market activity on Tuesday, after two insurers hit screens and the bank capital pipeline also grew.

A weaker than expected set of non-farm payroll data last week did little to deter issuers on Monday as a pair of borrowers awarded mandates.

Crédit Mutuel Arkéa (CMA) is demanding to be split from its parent group, Conféderation Nationale du Crédit Mutuel (CNCM). Despite a likely downgrade of its senior ratings, the covered bond ratings are well protected, said analysts at LBBW. And in the present market environment, spreads are unlikely to be affected, said bankers.

Barclays and BNP Paribas became the first European banks to tap the Yankee market for subordinated paper for almost a month this week.

French retailer Fnac is asking for larger ticket sizes and more lenders to join its second acquisition loan to buy Darty.

After getting agreement to switch the maturity structure of six deals, the French bank received the consent of noteholders to switch the maturity of a seventh covered bond from hard to soft bullet at an adjourned meeting this week.

Italy’s scramble to prop up its weaker banks has halted what had been a strengthening rally in periphery bank debt last month, with the most recent deals all widening this week.