Germany

LBBW

Commerzbank

A trio of European public sector issuers tapped Kangaroo and Kauri deals on Wednesday as bankers bemoaned the shortage of larger deals in Australian dollars.

The sharp fall in commodity prices over the past 12 months has placed the energy sector under increased scrutiny from credit investors. But it tends to be exploration and production firms, as well as mining companies, that have borne the brunt of negative sentiment. Utilities often benefit from lower prices in raw materials and their spread performance over the last year has been typical of the sector’s defensive status.

Deutsche Kreditbank just managed to raise €500m of eight year funding on Tuesday with a public sector pfandbrief. The transaction only just managed to get over the finishing line but in the current ‘dull and shaky’ market conditions, this was good enough.

The euro pipeline for SSAs is fit to burst amid strong conditions, with a trio of issuers hitting screens on Monday and at least one borrower set to come with a deal later in the week.

Germany is set to become the first eurozone sovereign to settle its derivative transactions via central clearing, after announcing plans on Monday to become a direct clearing member of EurexOTC Clear.

SGL Carbon, the German manufacturer of products from carbon, issued a successful €167m convertible bond on Wednesday morning, and launched the repurchase of an existing CB.

The Euromoney Smaller European Companies Index Series currently comprises 1350 companies across 16 European countries.

A pair of SSAs hit screens with euro benchmark mandates on Monday — and bankers are confident that market conditions will stay bright to support even more expected supply.

LBBW has issued the third 10 year German covered bond in just over a week, and the first €1bn sized deal from the country since July. Though the public sector-backed transaction was only marginally oversubscribed, demand was driven by high quality German insurers, who requested and got full allocations. Kreissparkasse Koeln has also opened books for a four year Pfandbrief.

A member of Barclays FIG syndicate team, who focussed on covered bonds, has left the bank to return to his previous employer.