Natixis

Corporate bond markets snapped into bullish mode on Friday as the effect of Mario Draghi’s renewed monetary stimulus kicked spread tightening into full throttle.

This week started with a host of FIG trades, including a holdco blowout from HSBC in euros, and, while supply slowed around the European Central Bank’s meeting, issuance is expected to return with a bang next week after the ECB announced a new stimulus package on Thursday.

After a string of strong syndications and auctions from the eurozone periphery during the last seven days, issuers from the region could be set to enjoy even lower yields thanks to the latest monetary stimulus package from the European Central Bank.

After over a month with no Obligations Foncières supply, Caisse Française de Financement Local (Caffil) and Compagnie de Financement Foncier (CFF) returned to the primary covered bond market on Monday.

Rating: Aa3/A/A+

The State of North Rhine-Westphalia more than doubled the record size for a green bond from a European sub-sovereign, pricing a deal several basis points inside initial price thoughts on Wednesday.

Issuers lined up to print in euros on Tuesday as a vital European Central Bank meeting loomed later in the week — but bankers were divided as to how much the flurry of deals was down to concerns over the central bank meeting.

The FIG senior unsecured market welcomed lower beta trades from DVB Bank and Dexia Crédit Local on Tuesday, as bankers started to turn their attention to Thursday’s European Central Bank meeting.

Public sector borrowers from the eurozone periphery are preparing a flurry of issuance in the next few days, with one still smarting from a change to its rating outlook late last week.

Konecta, the Spanish call centre operator, has closed its €195m acquisition debt in a club deal with four banks.

The Islamic Development Bank (IsDB) printed on Thursday morning its $1.5bn five year sukuk “well inside” its own curve, according to a syndicate banker on the deal. The profit rate was lower than its last outing despite the spread being much wider.

United Overseas Bank sold a landmark transaction this week, printing the first euro-denominated covered bond from Asia, and plans to become a frequent issuer in the market.