Italy

Public sector borrowers were able to tighten pricing and achieve well oversubscribed books for socially responsible investment bonds on Tuesday, as investors took advantage of the flood of issuance in the sector. The momentum is likely to continue with more deals expected over the coming weeks, according to SSA bankers.

Cassa Depositi e Prestiti on Tuesday brought the first syndicated SSA supply from Italy since a large sell-off in BTPs began in May — and investors appeared happy with the risk, allowing tightened pricing and a well-oversubscribed book. The sustainability bond came amid a flurry of SRI deals.

New York seemed set to avoid Hurricane Florence but US investors whipped up a storm of their own as they poured cash into a succession of big ticket deals from blue-chip domestic and Yankee names.

Italian multi-utility Iren highlighted the improving sentiment around Italian corporate bond issuers when it priced a €500m seven year green bond 15bp tighter than where similarly rated peer 2i Rete had printed a non-green deal the previous week.

Italy’s upcoming budget is far outstripping anything that might come out of this week’s European Central Bank meeting in terms of investor concerns, with one portfolio manager suggesting BTPs could come under further pressure in the run up to the announcement.

The deal flow of high yield bonds kept rising in euros and sterling this week. Four new issuers joined the already heavy pipeline, including a euro bond from UK premium car manufacturer Jaguar Land Rover.

Italy’s yields hit a one month low as investors responded positively to comments from the country’s government suggesting it would stay within European Union rules on its upcoming 2019 budget. Some on the buy side believe there could be much more value to come from purchasing BTPs — and SSA bankers believe that the sovereign could bring another syndication this year if the budget fails to dent confidence.

Massimo Moratti, the Italian petroleum tycoon, sold a €190m stake in energy company Saras along with his brothers on Wednesday evening.

Italy’s yields hit a one month low as investors responded positively to comments from the country’s government suggesting it would stay within European Union rules on its upcoming 2019 budget. Some on the buy side believe there could be much more value to come from purchasing BTPs.

Italian gas distributor 2i Rete Gas has dared to test the corporate bond market’s appetite for issuers from the country with a seven year trade. With its government budget on the horizon, some market participants said this deal could make or break the market for Italian issuance in 2018.

Italy could return to the market for a second syndication this year, following the government’s highly anticipated 2019 budget, according to SSA bankers.

Italy sold over €7bn of government debt with the highest yields in four years on Thursday, but the outcome was a positive one with Italy receiving good demand, according to bankers.