HSBC

A dollar market that has been a haven for issuers avoiding the troubled euro sector is starting to show signs of congestion, bankers have warned.

US investors showed few signs of fatigue as they continued to pour cash into corporate high grade debt amid an unrelenting pipeline of dollar issuance this week.

Harman International Industries, the US audio equipment manufacturer, made its euro bond debut on Wednesday, putting together a sub-benchmark deal that will be used in part to finance its acquisition of part of Bang & Olufsen.

FirstRand — Deutsche Wohnen — Immofinanz — Stadtwerke München — BSN Medical — Schenck — Technicolor

Euros are back on the menu for FIG investors after Swedbank and Rabobank Nederland stormed the senior market on Thursday. Bankers are now looking forward to a string of deals next week.

Michelin, the French tyre maker, issued its first bond since 2012 on Tuesday. While the issuer drew good demand for seven and 12 year euro bonds, a proposed 30 year tranche failed to gain traction with investors.

Electricity Supply Board (ESB), Ireland’s state electricity company, pulled together a hefty order book for a 12 year bond on Thursday — bucking a trend of long dated deals proving tricky.

NordLB reopened a four year public sector backed Pfandbrief on Wednesday in a move which locked in exceptionally cheap funding. But because the deal was largely placed with captive German savings banks, it offered little clue about the state of demand for euro covered bond benchmarks.

Fears that falling oil prices would hit Middle East bond market liquidity this year have not — as yet — been realised. The region’s investors are still cash rich and asking for paper. Bank Dhofar, Dubai Islamic Bank and Bank of Sharjah are among the names answering the call, with no sign that oil prices and macro worries have touched the region’s perennial appetite for fresh supply.

The dollar market hosted benchmark covered bond issuance this week as Australia and New Zealand Bank and DNB Boligkreditt issued deals under 144A documentation, in the same size and tenor and at the same spread.

HSBC is stepping up its European loan trading presence and has made two hires to the business in London.

While turbulence struck the euro market this week, issuers in sterling had an easier time of it with three companies putting together solid deals in the currency.