Germany

Deutsche Hypo made a rare appearance in the fixed rate senior market on Wednesday, as it joined a host of FIG issuers eager to fund ahead of a potentially tricky end to the year.

The European Bank for Reconstruction and Development is set to test the five year part of the dollar curve — a tenor not attempted by many issuers over the last few weeks — as a French issuer opted for the tried and tested three year maturity and a German agency was able to increase a deal at that tenor from its target size.

US agricultural equipment manufacturer AGCO more than doubled its first ever Schuldschein, from the launch size of €150m to €375m.

The recent rise in yields has provided covered bond borrowers from the most expensive jurisdictions like Germany an opportunity to diversify away from the overpopulated 10 year. DG Hyp was the latest issuer to take advantage of this development with its €500m long eight year which was issued on Tuesday.

Austria is looking to stretch its curve to hitherto untapped lengths, as it mulls a 70 year euro benchmark. Also seeking duration, Rentenbank pushed out its curve, printing a bond at 20 years for the first time ever.

Erste Abwicklungsanstalt has hired banks to run its first benchmark since June and its first in dollars since March.

NordLB issued a €750m public sector covered bond on Monday which, like the previous German 10 year from Commerzbank, was only just subscribed. The tight initial spread discouraged order inflation and stimulated high quality orders, allowing the borrower to issue more than was initially planned.

Eurex and CME Group both lined up new futures contracts this week as the market assessed a generational shift from bilateral derivatives towards cleared, exchange traded products.

TUI AG, the German tourism company, on Wednesday became one of only five double-B rated borrowers which have been able to print sub 2.5% coupons this year.

Bayer has released the names of the banks in its $56.9bn loan for the acquisition of Monsanto, the jumbo deal tickets have bumped up some lenders in European league tables.

Berlin Hyp issued a €175m tap on Wednesday after it emerged that Crédit Agricole would not be proceeding with its previously announced 10 year. Meanwhile, Hypo Oberoesterreich signalled its intention to press ahead with its debut covered bond.

German residential and commercial property company Aroundtown Property hit the investment grade corporate bond market for its debut hybrid transaction on Monday, executing the deal in a market where indices fell.