Hungary

◆ Senior euro funding pushed back in favour of covered bonds ◆ Both issuers and investors show preference for high grade products ◆ BPCE picks the US for a quadruple Yankee as sentiment recovers

EM pipeline keeps flowing in face of US Treasury volatility

CEE issuers are having to offer more due to lower liquidity than developed market peers

The bonds widened in the secondary market on Wednesday

Investors are keen for new issues, but they will be more selective than earlier in the year

CEE sovereign has already met its needs for this year via January’s dollar bond and a private placement

This would be the first new bond from a CEE energy company for over a year

There will be more CEE issuance in June, including from an SSA issuer and corporates

Euro market cannot compete with the pricing and size the dollar market currently offers

Bondholders are worried about Hungary's ESG profile and further credit rating downgrades

The euro market is still too rich for CEE FIG issuers, said one banker away from OTP

Using the dollar market makes sense, said one banker, as US investor interest in CEE increases