Germany

MTU Aero Engines, the German maker of aircraft engines, has issued a €515m convertible bond before being promoted to Germany’s Dax benchmark index later this month.

LBBW issued a well subscribed €650m nine year public sector loan-backed Pfandbrief on Monday at a relatively tight new issue concession compared with many recent negative yielding covered bonds.

Commerzbank attracted only €700m of demand for a €500m non-preferred senior bond this week, with a lead manager suggesting the deal showed the ‘state of the market’ as it welcomes an influx of tightly priced supply.

The Netherlands Development Finance Company (FMO), made its Uzbekistani som debut this week to take advantage of funds flowing into EM currencies thanks to low rates in dollars. Elsewhere, euro investors are looking at the ultra-long end of the SSA market.

Volumes in other syndicated loan markets may be down, but bankers in the Schuldschein market have rather more to crow about. Derided though it may be for being antique and parochial, it has nonetheless managed to attract an impressive number of debut entrants this year and is set to break the record volumes of 2017.

A manic Wednesday night of block trades capped off a good week for ECM volume as sellers took advantage of a positive market environment.

Erste Group and Crédit Agricole competed for covered bond investors’ attention at the long end of the curve on Wednesday with a rise in yields helping boost demand, particularly for the Austrian deal which started with a generous spread. At the same time Deutsche Hypo issued a three year.

Deutsche Hypo, Erste Group and Credit Agricole SCF have mandated leads for covered bonds that are all expected to carry negative yields.

A transparent pricing approach was integral to the success on Tuesday of UniCredit AG’s (HVB) five year Pfandbrief, which was launched with a deeply negative yield.

The European IPO market has been reopened with the listings of TeamViewer, the German remote access software provider, and Swedish private equity house EQT. However, with investors continuing to position more defensively bankers expect valuation pressure to remain.

Two near-investment grade industrials made a splash in the high yield bond market on Monday, with both Smurfit Kappa and Thyssenkrupp getting their order books oversubscribed multiple times.

Continental, the German car parts company, is still committed to its plan to spin off its powertrain division, despite postponing the IPO earlier this year due to volatility caused by the escalating trade war between the US and China.