Natixis

Commodity trader Gunvor is in the market to refinance its $1.36bn European revolving credit facility $210m of which is due to mature in November 23, according to three bankers.

The recent rise in yields has provided covered bond borrowers from the most expensive jurisdictions like Germany an opportunity to diversify away from the overpopulated 10 year. DG Hyp was the latest issuer to take advantage of this development with its €500m long eight year which was issued on Tuesday.

NordLB issued a €750m public sector covered bond on Monday which, like the previous German 10 year from Commerzbank, was only just subscribed. The tight initial spread discouraged order inflation and stimulated high quality orders, allowing the borrower to issue more than was initially planned.

Barcelona-based real estate company Inmobiliaria Colonial on Friday sold its new eight year bond to repay the four year tranche of its debut bond maturing in 2019.

The long end will stay very much in vogue for euro issuers next week — which SSA bankers are predicting could be the last big window of issuance for the year.

Rating: Aa3/AA/AA-

A sell-off in eurozone government debt last week, over rumours that the European Central Bank might start tapering its quantitative easing programme, may have helped issuers bring more shorter dated deals in euros this week than have been possible for months — but some issuers are wary that more volatility could be ahead.

Including redemptions and central bank buying, the investable eurozone covered bond market has shrunk almost €80bn so far this year. No surprise, then, that three seven year deals issued this week by Ibercaja, Banco Sabadell and Bank of Montreal were swamped with demand.

French agency Unédic is looking to set a trend with its new medium term note format to replace its BMTN programme as the chosen vehicle for one to six year debt

Eurofins Scientific, the unrated French food and drugs testing company, has decided not to proceed with a planned euro bond after completing its roadshow for the deal last week, as investors increasingly take a stand on the market's tight pricing levels.

French sugar and alcohol producer Tereos on Wednesday sold a tap of its 2023 bond. It plans to use the offering’s proceeds to repay high cost bank credit facilities.

Investment grade corporate issuers hit the euro bond markets in force on Tuesday with five primary transactions in play, but defensive deal sizes characterised the frantic flow.