Goldman Sachs

The first public deals of the year in the long end of the euro curve from the supranational and agency sector arrived on Monday, with the trades receiving huge demand and pricing exceptionally tight to secondary levels.

Aroundtown, the Frankfurt-listed property company, opened 2021’s corporate hybrid capital issuance on Monday. More subordinated deals are already being lined up.

Fundamentals are becoming more important again in Europe’s corporate bond primary market, but the power of the European Central Bank technical trade in the secondary market is quickly washing away any new issue concessions issuers have to give.

Green and sustainability-linked convertible bonds are poised to enter the mainstream, following a year of rapid growth in the asset class.

A burst of mandates on Monday confirmed what many market participants had expected: a rise in emerging market corporate bond supply.

LBBW and Banque Fédérative du Crédit Mutuel (BFCM) were met with muted demand on Monday morning as the pair ventured into a busier, yet weaker market in search of senior non-preferred debt.

Linklogis, a technology-based supply chain finance company, is planning to float in Hong Kong, and has filed a draft IPO prospectus with the city’s stock exchange.

CPPIB Capital mandated the banks to lead its first ever 20 year euro benchmark on Friday, in what is also the first mandate announcement for a benchmark transaction by a non-sovereign/sub-sovereign public sector borrower in the long end of the euro curve in 2021.

Banco Sabadell cut a lone figure on Friday as it ventured out into a quieter market to print a €500m tier two — its first bond since the proposed merger with BBVA fell through last November,

Yankee issuers stormed into the US dollar market to lock in record low levels of funding, despite this week’s turmoil in Washington, DC.

Spain’s Abanca sold the year’s first subordinated deal in euros on Thursday, when it issued a perpetual non-call 5.5 year additional tier one (AT1) bond to help optimise its capital structure.

Non-preferred senior and holding company issuance was the focus for bank borrowers in euros this week, in what has been a slow start to the year by FIG market standards. With cheap central bank funding on offer, issuers have opted to start their funding programmes by filling their regulatory buckets.