Germany

Guarantor: Financial Market Stabilisation Fund of the Federal Republic of Germany

FMS Wertmanagement was this week the latest public sector issuer to enjoy enviable conditions in the dollar market, and after a US Federal Reserve meeting this week passed without any major surprises more borrowers are rumoured to be looking at trades for next week.

Deutsche Börse reported second-quarter earnings on Wednesday that showed increased trading of interest rate derivatives offset lower activity in equity and index derivatives.

The ECB stimulus has likely contributed to a flow of borrowers and buyers entering the Schuldschein market, as downward pressure on spreads has forced lenders to look further for yield. But with talk of ECB tapering, some fear that the international investors who drove up volumes will return to more traditional stomping grounds. Others , however, think these investors will be more faithful.

After Monday’s British flavour to corporate bond issuance, German real estate company, Grand City Properties brought the only new issue in the market on Tuesday, as part of an exercise to extend the average maturity of its debt.

NRW.Bank announced on Wednesday that it will go on the road at the end of August to market its fifth green bond.

The ECB stimulus has likely contributed to a flow of borrowers and buyers entering the Schuldschein market, as downward pressure on spreads has forced lenders to look further for yield. But with talk of ECB tapering, some fear that the international investors who drove up volumes will return to more traditional stomping grounds. But these investors will be more faithful than it might seem.

After Monday’s British flavour to corporate bond issuance, German property company, Grand City Properties, and French food services company, Sodexo, brought deals to the market on Tuesday. Grand City printed a €600m nine year new issue and Sodexo tapped its €600m 0.75% April 2027 deal for €200m.

FMS Wertmanagement nipped into a quiet dollar market on Tuesday, pricing a five year global benchmark flat to its curve after taking the unusual step of jumping 2bp from opening guidance in one step.

Oil and gas company MOL became the first Hungarian issuer to raise funds in the Schuldschein market, in a sign that more lenders, given the right credit, are prepared to be tempted eastwards.

FMS Wertmanagement came shooting out the blocks on Monday with an early mandate for a global benchmark. The issuer has opted for a five year, with banks on the trade citing strong investor appetite for dollar paper at that point of the curve.

Mizuho Securities said on Monday that it plans to establish a new subsidiary in Frankfurt to carry on EU securities business following the UK's departure from the bloc.