Germany

A number of smaller European banks are trying to buy Schuldscheine on the secondary market, according to sources with knowledge of the situation, in order to post it as collateral to receive cheaper funding from the ECB ahead of a March 31 deadline.

KfW is set to make a return to the Canadian dollar bond market on Tuesday, marking its first appearance in Maples since February 2019, when it sold a C$1bn three year.

German stocks have continued to be among the best performing in Europe in 2021, fuelling momentum in the country’s equity capital markets.

Deutsche Bank attracted more than €7.5bn of demand for two tranches of non-preferred senior debt on Monday, as investors showed strong support for the credit following a positive set of results for 2020.

Cooperative farm supplier Danish Agro has entered the Schuldschein market, after nearly a fortnight has passed with no new issue.

Belfius Bank and Santander found strong support among bank treasury investors in the euro market this week, helping them to print new preferred senior deals at very low yields.

CaixaBank and BayernLB were able to sail through fair value with green non-preferred senior deals this week, bucking a trend for rising new issue premiums in 2021. Bankers say a lack of supply is finally helping borrowers to exert more power over their pricing.

Banco Santander has followed Belfius Bank in launching a very successful new seven year bond this week, as bank treasury accounts lend their support to low yielding preferred senior paper.

Shares in AUTO1, a German online marketplace for used cars, were up 40% in their first few hours of trading in Frankfurt on Thursday, capping off a strong fortnight for European IPOs.

Aareal Bank issued the longest dollar Pfandbrief benchmark from a German issuer since 2016 flat to fair value and in good size on Wednesday. The transaction provided a statement of confidence in the credit, following its recent profit warning.

Alternative asset manager Hayfin has appointed a former Bank of America managing director as a portfolio manager for private credit.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, February 1. The source for secondary trading levels is ICE Data Services.