France

Banque Fédérative du Crédit Mutuel has come to market with 2016's largest medium term note (MTN) so far.

La Financière Atalian, the French facilities management company, priced on Tuesday the first European high yield issue of the year. The €125m tap was increased to €150m.

With only one small tap launched so far in Europe's high yield bond market this year, investors are disappointed with the scarcity of deals in the pipeline.

Poor liquidity in the additional tier one market could keep new issue premiums in the product high for some time to come, according to some FIG bankers, who saw Crédit Agricole seek the depth of the dollar market again on Tuesday.

Atalian Global, the French facilities management company, on Monday opened the first roadshow of 2016 for a high yield bond in Europe, as it announced the acquisition of US peer Temco Facility Services.

BBVA, BFCM and BPCE met with strong investor demand for euro senior unsecured deals on Monday, as peripheral and longer dated debt proved no deterrent to buyers.

Lloyds and Société Générale both returned to the covered bond market to issue their first euro-denominated benchmarks of the year on Monday. The UK bank issued in much larger size with an order book that grew far more quickly than the book for SG’s deal.

Just as European equity capital sales made a prompt start to the year on Tuesday, the first viable window available, with the €1bn NN Group block trade, the equity-linked market also wasted no time. Safran, the French aerospace and defence company, issued a €650m convertible at what a banker claimed was a record low yield.

Borrowers who issued covered bonds this week that are eligible for the European Central Bank’s purchase programme (CBPP3) did not receive such a strong reception as those whose bonds were not eligible.

Wednesday brought red back to equity traders' screens after a buoyant Tuesday, but trading action confirmed the satisfactory execution of this year’s first two substantial equity capital markets deals in Europe: the €1.03bn block trade in NN Group, the Dutch insurer, and French aerospace firm Safran’s €650m convertible.

Just as European equity capital sales made a prompt start to the year today with the €1bn NN Group block trade, the equity-linked market has also wasted no time. Safran, the French aerospace and defence company, issued a €650m convertible at what a banker claimed was a record low yield.

Caisse Francaise De Financement Local (CAFFIL) raised €1.5bn in the covered bond market on Tuesday with a two tranche public sector-backed deal. The higher yielding €500m 15 year tranche was subscribed, but the €1bn six year was not.